OK here’s the scenario. You are up to your eyeballs in debt for a variety of reasons and along comes someone who tantalisingly hold s out in front of you potentially the answer to all of your dreams. A never ending stream of cash, flowing endlessly into your bank account and thereby in one fell swoop neutralising all of your debt and financial pressures.

The answer to a prayer?

Maybe.

The universal panacea to all your woes?

Possibly.

The only thing that you must consider is, remember the old adage. If it looks too good to be true then it by and large probably is.

The reason I bring this subject up is that this week has seen a couple of offerings from various Internet Marketing Gurus who have been offering to the general public the very opportunities described above. The answer to all your woes and financial pressures but as with all things like this there is a catch and you have to examine that catch to make sure that these opportunities don’t actually exacerbate your present situation rather than make it better.

We have one “guru” who claims that by running various paid for advertising Campaigns on Facebook you can make anything from $15 a day profit from running a Campaign without a web site if need be…as long as you are prepared to spend the $45 per day to fund the paid for advertising. Now let’s examine this. The principle is spending $45; get $60 back in return.

OK, fine I agree with the math and that can’t be argued with. But however, the $45 has to be paid for up front and the $60 is not likely to hit your account for potentially six weeks.

So effectively you are fronting up the $45 for six weeks before a single penny comes back into your account, and then only $15 of that is profit. So it’s actually $45 times 42 (six weeks at 7 days per week) making $1890 to make $630.

Hmnnn not quite so sexy now when you think about it?

I’m not too sure whether I know too many WAHM’s or unemployed who have the odd $1800 around to make $630 with?

OK, so the math is not in dispute, all that is, a far as I am concerned, is whether the right story in today’s climate is being told and sometimes the quick fix isn’t necessarily the right one.

It’s a killing field out there, to paraphrase Winston Churchill “Never in the field of Human Finance has so much been owed by so many and the hassle caused by so few” that sometimes when you are in real debt, initially to speculate to accumulate is not perhaps the wisest move ……..initially.

Take some time, take a few steps back, don’t be pressurised into thinking that you absolutely have to jump now or else you’ll miss the boat. In my experience there’s always another one along shortly and you might be in better shape to take advantage of that one.

One of the first steps for getting out of debt is to actually know and realise what level of debt you are actually in. Now this might sound extremely obvious but it is essential to realise exactly what you are dealing with and it is a mistake that too many people fall into.

To perhaps view this is layman’s terminology, you’re in a hole, before you can dig yourself (or get someone else to dig for you) it is essential to know how deep that hole is.

Make sense? Perhaps so, but the trouble with being in debt is that by and large most folks tend to live in denial and to be honest that does no one any good at all. It might be painful and extremely uncomfortable to face up to actually how much you owe but it is essential to know.

After all if you don’t know and accurate and actual figure how can you negotiate your way out of it? How can you make your offer of payment in part or whatever?

You will be surprised how much easier it feels knowing an exact figure when you are in debt and once that figure is established it’s almost as if you can draw a line under the whole experience.

Once you have closed the door, you can begin to move forward. Till that happens, you run the risk of suffering what we all have suffered from time to time (at least those of us who have been up to our necks in debt) and that all “debt paralysis” – a failure to be able to do anything as you are totally overwhelmed and frightened of the situation you are in and as such can’t move forward at all.

So make avoiding suffering from Debt Paralysis the first step for getting out of debt?

As debt continues to increase in many households across America, more families each year are finding themselves looking for ways to reduce their overall household debt. For some, this may be easier said than done. Debt reduction requires a lot of hard work and dedication. Especially when you are used to spending money left and right.

Those that are serious and committed to reducing their debt will eventually reap the rewards of being debt free. Reading my simple seven tips will give you many ideas, about how you can reduce your debt.

Cut back
When you start to cut back on spending, you will find corners that you can cut through out the month, to help you pay off your debts. Simple things such as, being aware of all of the electricity you use, and turning off lights that are not needed as you leave a room, will help reduce your light bill, therefore, you save a little more money to reduce your debt with. Once you become aware of your spending habits, and start cutting back, you will start to notice more ways to cut back each month.

Budget
Budget your income. List all of your monthly bills and their due dates. Apply them to your budget, as well as other household needs, for example, groceries, gas etc. Allow yourself only so much money per month to spend on extras. Sticking to your budget will show self control, and determination for reducing your debt.

Limit the use of your Credit cards
If you can not pay cash for it, then do not buy it. If you have to charge something, make sure that you can pay the balance in full when your next credit card bill comes in. Never charge on your credit card to only pay the minimum monthly amount. You will never get that maxed out credit card paid off that way. The importance of paying your credit card balance in full, can not be stressed enough.

Get rid of your credit cards
If you are determined to reduce your debt, cutting up your credit cards will help. If you do not have them, you can not use them. If this is too big of a step for you, at least get rid of the unnecessary ones. Keeping only one or two, low interest rate cards for emergencies only, is a good idea. Remember if you can not pay cash for something, then you probably do not need it.

Pay off your debts
If you have already acquired some debt you need to pay off, now is the time to get started. Decide which debt is your smallest and start with that one. Pay on it as your budget will allow. Once you have gotten your smallest debt paid off, you will have a feeling of satisfaction and know that you can pay off your debts. Then move to the next smallest debt, when you are paying them off one by one, it is easier to do, with out feeling over whelmed. Before you know it, all of your debts will be paid and you will feel great about knowing you paid them off.

Debt consolidation
Debt consolidation is another option to look at for reducing your debt. Debt consolidation companies, will call your creditors for you, and make payment arrangements for your debts. Many companies will get you one low monthly payment to pay each month, until all of your debt is paid off.

Financial counseling
Make an appointment with a financial counselor to help you reduce your debt. Some people find, having someone else point out the errors in their spending habits to help tremendously. Financial counselors can also show you how to better manage your money, and stick to a budget.

Nowadays, debt has become a standard part of life. It comes in many forms including student loans, medical bills, auto loans, unpaid utilities, mortgages, money borrowed from friends and relatives, store credit and the most dreaded of them all, credit card debt. It’s a part of life for almost all of us, rich or poor, but it doesn’t have to be. In this nine-part series of articles you will learn the steps to take to become completely debt-free and stay debt-free.

Let me start off by saying not all debt is necessarily bad. It can be very beneficial to borrow money sometimes, if done for the right reason. For example, taking out a mortgage to buy even a modest home will most likely cost you several hundred thousands of dollars over the life of the loan, however you will gain equity and the house will usually appreciate in value, making it a better option in a lot of cases than living in an apartment. Other examples would be borrowing money for college in order to acquire a higher paying job, or borrowing money to start a business. Other times it is just un-avoidable such as a medical condition or loss of a job. They key is to borrow for the right reasons.

The problem is, we quite often borrow money for the wrong reasons. These include taking out auto loans for nicer cars than we really need, not saving money to cover minor emergencies that come up such as a major appliance breaking, and of course making purchases with credit cards when we don’t have the money to buy them.

The problem has really gotten out of control in the last few decades. The average American household owes about $19,000 in non-mortgage debt, including about $7,500 in credit card debt. When you compare that to the average household income of $43,500, you can see the average American household owes 43% of their annual salary in non-mortgage debt.

As you can see, if you’re in debt, you’re not alone. No matter what kind of debt you have, or how much, your life will be less stressful and more fruitful if you eliminate it. This nine-part series will walk you through each of the necessary steps to help you eliminate your debt. It definitely will take some work on your behalf, but if you stick with it, you can succeed and the benefits will be well worth the work.