I'm Bo Majors
 I got my free credit report, flipped out, paid bills, asked for credit help, got new good credit and disputed errors on my credit report. 

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I read your website and used a lot of the information you provided and was able to raise my score from 571 to 671 in 2 1/2 months. Thank GOODNESS for your website. IT WORKS!
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 How to reduce debt by budgeting like an able or responsible consumer?

1.  The first thing I must do is to analyze my income verses my outgo. I start by listing fix cost like, car loans, home loans, utilities, insurance payments, clothes and food. Then I make a list of all the fun expenses in my life and add all these up and subtract them from my regular home income.

2.  The Library has plenty of information on home budgets and I got a real nice home budget book from my local Office Max. I must say budgets can be depressing but I must look at my debt problem before I can go on a debt reduction budget.

3.  Normally if my debt has gone to out of control I need to contact all my creditors and negotiate a new and possibly reduced payment plan. I never wait until my debt are turned over to a debt collection agency. Read about my debt collection right by law.

4.  Auto loans and home loan are secured debts that can be repossessed for non payment. Usually repossession will happen at the 3 moths late mark but many car loans can be repossessed at almost any time a loan become late. If I am about to have my home or car repossessed I might be better off selling the car or home myself and paying back the debt so repossessions don't show up on my report and I have a good chance of getting into a good debt position sooner.

5.  Many mortgage companies will negotiate new payments terms if they believe I am working with them in good faith. I will still be liable for past due payments and fees but sometime a mortgage lender will even wave some fees if you are really earnest and trying to pay.

6.  If I am still having problems working out a debt reduction plan with my home mortgage lender, I should contact a housing counseling agency. Some of these agencies only work with FHA loans but many will help anyone with debt problems. Call the Department of housing and Urban Development or a legitimate housing authority in your area or state.

Self help budgeting to reduce or remove debt problems for ever.

1.  Use the pyramid debt repayment system. Pay the smallest bill off first and use that same amount of money to pay extra on each bill as I go until I pay off the largest bill.

2.  Roll high interest credit card debt to the 0% cards I get in the mail and continue to use the debt pyramid repayment system. 

3.  If I own my home I consider getting a second mortgage, home Equity line of credit or refinancing my existing mortgage and rolling all my unsecured debt into the loan? This is dangerous because I could loose my home. 

4.  Get another job and use all the proceeds to reduce debt. I might sell my expensive car and buy a $2500 car for cash.

5.  Buy a book on Debt and budgeting to learn more about debt reduction consolidation and home budgets.  

6. Last and least, File for bankruptcy. Get 4 opinions first. 
   1. Ask a financial consultant if my debt is totally out of control and unmanageable. Find out how much it will cost and compare cost.
   2. Preacher or family counselor, I need to pray about this one, even I aint religious.
   3. Family member or close friend. Avoid Aunt Big Mouth.
   4. An accountant, tax advisor or bean counter. These people have no bias and usually will give good advice.

7.  After all this I will smok'em piece pipe a few days then make a informed analytical decision.

 The Debt Reduction Pyramid will enable me to completely pay off my credit card debt finance company debt, loans and bills over time using a  plan of action that makes common sense.
 The debt and budget reduction plan is simple and easy to follow
 The debt reduction Pyramid relies on solely on self discipline.
 One must be willing to not charge more debt.
 How it works:

•  I pay off the smallest loan I have first (the top of the pyramid) by making larger than the minimum required payment and make minimum payments on the other debts. When I pay the debt off, I give myself a bonus night out to eat dinner. Don't charge dinner.

•  After I pay the smallest debt off, I add the payment I made on it, to the minimum payment of my second largest debt for further self help debt reduction. After I pay the second largest debt, I to the third largest debt and add both previous payments to the minimum. When I pay the debt off I give myself another bonus night out to eat dinner and I don't charge anything while in self help debt reduction.

• Continue using this strategy until all credit cards are completely paid off.

Self help debt reduction Budgeting Steps

•  Get a small notebook to take with me. I write down everything I buy for at least a month. Up to three months.
•  After my time period is up, I analyze my spending habits. I put all my  purchases in categories like groceries, entertainment, etc.
•  Separate those categories into two categories: Fixed Expenses and Variable Expenses. Fixed are things like Rent and Insurance. The variable expenses are all those that you have in your power to change like groceries, utilities and clothing.
•  Add up my expenses in each of the category. Write down totals for each.
•  Add up all my income for the month and add up my fixed expenses. Subtract these expenses from my income.
•  Now I can spend the leftover in other categories. Remember yearly expenses like taxes. Put back at least 10% in savings. Notice where I can cut back. Decide the amounts to spend in each category on my budget. Now I have a budget.
•  Keep continual track monthly debt and spending. Readjust my  budget if I need to. Only I know my spending priorities.

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