James 1:3-4 – When the way is rough, your patience has a chance to grow. So let it grow, and don’t try to squirm out of your problems.

If you are trying to get out of credit card debt, I would suggest cutting up AND canceling your credit cards as soon as possible. My wife and I worked extremely hard to eliminate the stress that credit cards caused us on a monthly basis. We did not cancel all of them, but we did cut them up so we can’t use them.

Today, we received a statement from American Express. You know, the one where they tell you that they are changing everything about the agreement that you signed. The one where you do not have a choice. Either accept it or cancel it. We chose to call and cancel it.

The American Express operator was unbelievable. She was really, really, really well trained. She tried everything that she could to help us decide to keep this card open. She played upon my wife’s fear of the unknown and our crumbling economy. Her story was so well rehearsed that I thought I would share it with my readers.

My wife made the call, since I tend not to be very polite when I call. She was transferred to three different operators before she got to the “actress”. The actress listened quietly while my wife explained that we wanted to cancel the card. When my wife stopped talking, the operator sat patiently for about 20 seconds before responding.

She then drove straight into a completely fabricated story about how she and her husband bought new carpet for their house last month with cash. When the carpet arrived, it was the wrong color, the wrong style, etc. She then called the vendor to try and get her money back and was told “too bad, too sad….the carpet is already paid for.”

Finally, the actress explained that if she had used her credit card, this would not have been a problem since American Express would have returned her money immediately.

Man, American Express’ training program has really kicked it up a notch. Don’t fall for the game!

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Do you hate seeing the amount of interest you pay the credit card companies each week? Do wish there was an easier way to lower credit card debt without getting a second, or even a third, job? When I began my quest to become debt free, I started sending multiple payments to my creditors each month.

Credit card companies like to charge you on your average daily balance.  If you send in payments more often, you can effectively reduce the interest that accrues on your daily balance. Additionally, if you will commit to making payments every 14 days, you will end up making an additional payment every year. This will truly help you lower credit card debt.

Before you start sending your credit card companies extra checks, ensure that they allow you to remit amounts that are less than the minimum amount due. Not all credit card companies will honor multiple monthly payments that are smaller than the stated minimums.  If you are going to commit to such an effort, you will want to be sure it is worth it.

Once you have established that making multiple payments is allowable, decide  how you are going to actually make the payments. My preferred method is to use online banking. I have used it for well over two years now, with absolutely no issues. You are, in fact, safer making payments online than you are when you send in a check. Additionally, when you pay online, your payment is already coded to your account. You do not have to worry about the credit card company incorrectly applying your payment to someone else.

Next you need to decide how much you are going to send every 14 days. Since my goal is to lower credit card debt, I actually send in the minimum amount every 14 days. If your income does not allow this, send in half of your minimum every 14 days. This is another benefit of using online banking (your payment will get there faster). In order for this method to work, you must be organized. Otherwise, you can get into trouble.

Since you will be making less than the minimum amount due every 14 days, it is imperative that you do not fall behind in any payments. Even though you are making more than one payment, you are still required to make at least the minimum payment. You can, and will be, assessed late fees and penalties if the second payment arrives late. Again, I cannot stress how much having an online account will help you in this regard. I enter my payments to automatically be made on a certain day. This way if I forget, my payment will still be sent off as planned.

What do you think? Has anyone tried this method to lower credit card debt?

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It always amazes just how creative a person can be when they are trying to become debt free. I have tried a few different methods, all with limited success. I wanted to tell you about my latest venture.

Every year parents rush out to find the hottest toys to buy for their children at Christmas time. As my son is only 2, I am really out of the loop when it comes to the “it” thing. Fortunately for me, my brother’s son is a few years older and is your typical 4 to 7 year old. If he likes it, then most kids his age will to.

This year all he wants is something called “Bakugan“. I had never heard of it until my brother asked me to see if I could find some for him. It appears that not only do the kids want them, so do the collectors. And only one thing can happen when that combination occurs – PROFIT.

I first went to eBay and did some preliminary research. Most people have been opening the toy package and selling them loose. This allows the collector to see the toy’s “G”, which is its power level, and reduces the shipping costs needed to mail the package. I have to admit the manufacturer has created some what of a demand by having the same toy have different power levels. Obviously the kids want the toys with the highest power (it is a game after all).

Next, I stopped by my local superstores and looked for the toys. The first four I went to did not have any. This confirmed that they were indeed pretty popular. At the 5th, and final, superstore, I hit the jackpot. I guess the store just opened a new case.

I could have easily spent $300 buying everything they had. I elected to do the safe thing, and buy only $100 worth. Immediately I went home, opened them, and put them on eBay. I am now sitting here wondering how big of a mistake this was.

Will I make a profit? Will I even make my money back? I have tried many things to become debt free, but this is the most stressful.

What have you done in your pursuit of debt freedom? Have you ever took a chance on something that may or may not work as you had planned it? I would love to hear from you!

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