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How to:

Slash your interest rates Boost your credit score Negotiate hard with your creditors Become debt-free fast ? and forever

By Nick Clements, Co-Founder of

Debt Free Forever: Your Plan for Financial Freedom

Table of Contents Introduction........................................................................................................................ 3 Self-Assessment................................................................................................................. 5 Control Your Expenses...................................................................................................... 12 Transfer & Attack: Balance Transfer............................................................................... 17 Transfer & Attack: Personal Loans.................................................................................. 24 Build, then Blitz................................................................................................................. 29 Time to Negotiate............................................................................................................. 36 Bankruptcy and a New Beginning................................................................................... 41 Future-Proof Yourself....................................................................................................... 44

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Debt Free Forever: Your Plan for Financial Freedom

Introduction

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Debt can invade your life in many different ways. It can sneak up on you: the result of spending $20 more than you can afford every day (which becomes more than $20,000 of debt in three years). It can appear all at once, after an emergency medical expense or a job loss. And it can surprise you in a terribly painful way, when you learn about a family member's hidden debt-fueled addiction.

Regardless of how you end up in debt, being in debt has a huge impact on your life, and that impact is not limited to your finances. Studies have demonstrated that high levels of debt can cause stress, depression, high blood pressure, and deteriorating health in general.

But debt does not have to be a life sentence. There are many options out there, ranging from balance transfers to bankruptcy. And there is one common theme with all of these approaches: If you take action now, your situation will improve. In some ways, debt is like any other disease: The longer you wait to deal with the problem, the worse it gets. But, unlike other diseases, it is never too late to put together a plan and find a complete cure.

If you are reading this guide, you are looking for answers and have taken an excellent first step. We know that there is a lot of information out there, and sometimes it can be horribly confusing. Even worse, we know that many people try to take advantage of people in debt. For just a "small fee," they promise miraculous overnight improvements in your credit score or amazing settlements with creditors. For most of these people, the only guarantee they can make is that you will pay them a fee. Unfortunately, if it sounds too good to be true, it probably is.

We have put together a step-by-step guide in simple English. In addition to this guide, you can always reach out to us, and we can help you build a personalized plan. Just send us an email at info@, and we can answer your questions by email, or set up a 30-minute telephone consultation at no cost.

The sooner you start, the sooner you can be on the road to recovery. But, before we get started, I wanted to deal with the elephant in the room. So many people who have debt feel incredible shame. They are embarrassed by their situation, and that embarrassment holds them back. They are afraid to ask for help. They are afraid to negotiate hard with their creditors. And their shame weighs on them, causing stress and health issues.

You have no reason to be ashamed. You are not alone: Over 40% of Americans have credit card debt that they can't pay in full this month.

Life has been challenging for most middle-class Americans. Wages don't increase, but the cost of living certainly has. Health insurance (if you have it) has become more expensive, and the deductibles and co-payments can still be a couple of months of your earnings. And we all have temptations. Whether it is a pair of shoes, a dinner in a restaurant, or a flight to Florida ? we lose our selfdiscipline and indulge. And then we wake up, full of guilt and shame.

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Debt Free Forever: Your Plan for Financial Freedom

Just remember: "He, who is without sin among you, let him be the first to throw a stone." Nearly one in two people has debt to deal with. Don't worry about the judgment of others. Instead, focus on your own future.

Life is too short to dwell on mistakes of the past. The goal of this guide is to help you put together a plan for the future. You can build a plan this month. You can be on the right path in three months. And you can feel like a different person in two years. Our goal is to help you get there.

Why can we help?

My name is Nick Clements, and I am the co-founder of MagnifyMoney and the author of this guide. Before MagnifyMoney, I spent nearly 15 years in consumer banking. Most recently, I ran one of the world's largest credit card companies. I have a unique, insider's view of how the system works. And I have used that knowledge to put together this simple, step-by-step guide on how to get debt free.

Banks are businesses like any other. Their goal is to make as much money as possible. They make the most money when you are in debt, paying only the minimum due. But now you have a former insider, ready to share the tricks and tips needed to get you debt free as quickly as possible.

Let's Get Started

This guide will help you build your debt-free plan. And here are the steps that you can follow:

1. How Bad Is It? In order to get started, we need to do a full assessment of your situation. That means we will:

a. Review your budget, and understand your cash flow and debt burden. b. Review your total debt (by type), and review your total debt in relation to your income. c. Understand your credit report and your credit score. If you have bad credit, we need to understand what is driving the bad

score.

2. Build the Plan. Based upon the diagnosis, we can help you put together the next steps. You will be put into one of the following

plans:

a. Transfer & Attack: Transfer your balance to a lower interest rate, and attack that debt. b. Build, then Blitz: Build that credit score, tighten that budget ? and then transfer your balance to a lower interest rate. c. Time to Negotiate: Given your debt and income, you probably will not be able to pay off your debt. Rather than paying just a

small amount (forever), it is time to negotiate a deal. And negotiate hard. d. Bankruptcy and a New Beginning: Sometimes the best option is to consider filing bankruptcy. The decision should not be

taken lightly. But sometimes this is the best solution and will get you to a better solution in the quickest amount of time.

3. Future-Proof Yourself. You never want to end up in high-cost debt again. That means planning for the future. And we have a

checklist, which includes: a. Emergency fund: how big should it be, and where should you keep it. b. Emergency borrowing: sometimes big emergencies happen. And you want to have a credit line set up before those

emergencies happen. c. Keeping your other financial costs low: how to keep your checking account free and your insurance costs low, and how to

make your everyday spending work for you. d. Investments: how to make sure you are not overpaying for your future.

And now let's get started with the self-assessment.

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Debt Free Forever: Your Plan for Financial Freedom

Self-Assessment

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In order to deal with a problem, you first have to understand how bad it is. In this chapter, we will quickly determine how bad is it? Based upon your answers to some basic questions, we can then decide the best plan of attack. You don't have to read the entire guide: Your answers will help us direct you to the appropriate chapter to build your debt-free plan. To figure out the right plan, you need to ask yourself a few questions: 1. What does my monthly budget look like? How much do I spend each month, compared to how much I earn?

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2. How much debt do I have? And how does that debt compare to my income?

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3. How is my credit score?

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Why are these questions important?

If you are still spending more money than you earn every month, we need to deal with your budget and spending first. Any other solution would be like a band-aid on a broken arm: until the spending gets under control, any other solution won't help.

If your debt is just way out of control relative to your income and assets, you will have to be honest with yourself. You may not be able to pay off the debt, and you will have to explore some potentially more aggressive options.

Your credit score is primarily a measurement of your responsibility. Have you paid your bills on time? A good credit score unlocks

the door to low interest rate alternatives, which can help you get out of debt faster. But, if you don't have a good score, your options will be more limited. There is good news: credit scores can be improved. (Not overnight, like many people asking for your

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