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a) Income.
b) Pay monthly bills. (This will include the debt retirement items.)
c) Money in savings for retirement and emergencies.
d) Food, household, etc. - What you have allocated for these items, withdraw that amount from the bank and then go shopping. Leave debit and credit cards at home so you only have the allotted amount of cash.
Save every receipt and staple them to the monthly bank statement. Every month review to determine if your budget needs adjusting. Use your banks' bill pay system for the regular bills. Schedule all payments to arrive at the creditor's place the day before it is due to avoid late fees and a record of being late.
e) Create a debt retirement plan. Use the bank bill pay and then do not think about it. Focus on rebuilding your life and credit rating. If you have debts that have gone to collections, do this to eliminate the debt:
i) Send a money order for the amount you desire to settle the debt. Make a responsible offer they can accept. The money order should be from your bank for tracking. Further, the money order from our bank shows the creditor you are legitimate and that the funds are available for them.
ii) Write on the front of the money order, your account number and after it, write "Paid in full for all services, charges, interests, and fees."
iii) On the back, at the top - above the endorsement line - print the following: "Signature of payee constitutes acceptance of payment in full."
iv) Make color photo copy of both sides of the money order. Mail it to the creditor, certified return receipt.
e) Once it has cleared the bank ask the bank for photo copies of the endorsed money order.
Keep a file on this so you have proof for the credit reporting bureaus or collector trying to get you to pay them.
2. Acquire Payment Accounts. Maintain a small number of revolving accounts with high limits, and pay off the balances each month.
The key to this part of the plan working if you are dealing with credit card accounts, is to only charge small amounts that you have the budget to pay off in the next billing cycle.
Also, try something simple and that you can afford. A piece of jewelry from a jeweler, or a used car from a dealer. There are numerous companies available that will offer credit to people with bad credit. But be careful, and read everything carefully. There are many unscrupulous types that prey on fraud victims. They see us as easy pickings.
3. Limit Number of Accounts. Don't apply for credit indiscriminately. "Lots of 'hard inquiries' in your credit file will damage your credit rating," says John S. Davis, a financial adviser and certified financial planner with Mentor Capital Management in Elmhurst, Ill.
4. Opt Out. Call the Opt Out line to have you removed from companies gaining access to your credit report for pitching offers. It is toll free. You'll have the option of opting out for five years, which is what they will automatically place on, unless you tell them, "I want out permanently." Call: Opt Out: (888) 567-8688
You also have the option to ----- (see #5 below)
5. Stop Inquiries on your Account. Do not allow companies to do unnecessary inquiries on your credit account, says Elaine Scoggins, a certified financial planner in Seattle.
Example: shopping for a car, major appliance, or home loan, refuse to provide your social security number or private information to anyone. Sales people will pressure you, telling you its okay.
NO! It is s Not okay! Tell them you just want a ball park number. Stand firm. If they refuse, you do not want to deal with that company. Every time one of them checks your credit, it dings your credit rating.
"If you don't need it, leave it," says Scott D. Cole, a certified financial planner in Bessemer, Ala. "Only seek credit when you need credit. Ten percent of your FICO score is based on new credit account opened."
6. Get a new credit card and don't use it. Your FICO score is based upon a ratio of the overall percentage of outstanding debt divided by  available credit, says Bedda D'Angelo, a fee-only certified financial planner and president of Fiduciary Solutions in Durham, N.C. "A new credit card increases your total available credit," she said.
7. Larger Payments than Required. Get yourself in the habit of being disciplined. Do not max out your card and always make larger payments than the minimum and make them on time -- no matter what.
This means if the payment is due June 20, send the payment or make the payment at least five days before the due date. See on this web site, Frontline's investigation about the predatory practices of credit card companies. You want to protect yourself by making the payment on time and more than expected.
8. Downsize Debt. One of the most damaging aspects of credit card debt is owing more than the limit on the particular card. Pay this portion first.
 Try negotiating interest rates with your credit card company, advises Penny Marlin, a certified financial planner and financial adviser in Delray Beach, Fla.
Focus on one card at a time and pay and or negotiate to get it paid down and paid off.
Use the debt retirement plan discussed in item 1 above.
9. Forgiveness. If you accidentally make a late mortgage or other loan payment, ask the
lender for forgiveness "just this once" according to certified financial planner John Davis, "It works."
Also, if you have lost a job, or whatever, ask your lender to put your payment on the tail end of the loan.
Most lenders will do this, but it is a one-time thing, so, only use in an emergency. Remember, it is not a free ride.
You are paying heavily in interest for this service, but it will help you from losing your home and damaging your credit score.
10. Divorce. If you are getting a divorce, or, have completed the divorce, be sure to contact your creditors, so, you can replace joint credit cards and other loans in your name.
Also inform the credit reporting bureaus you are no longer responsible for debts that belong to your spouse, if that is the truth.
11. Never Max a Credit Card. Never ever reach the maximum limit on a credit card account. You pay excessively penalty fees and interest charges. Also, if you are using the card to survive, that is your sign something is wrong and you are headed for financial collapse.
A good rule of thumb is not to be above 80 percent of the actual credit limit.
"It is better to spread the debt across several accounts," says certified financial planner Scott D. Cole. "It is better to owe $5,000 on two cards each with a $5,000 limit than it is to owe $5,000 on one card with a $5,000 limit," Cole said.
12. Closing Lines of Credit. Never close the lines of credit that you use responsibly.
"Keep them open and maintain them for a long time, and your score will improve," says Scott Cole. "If your debt is high, however, you should consider closing unused credit lines. Close the account and get confirmation in writing that they are closed."
Conclusion
You can prosper. The power of positive thinking is essential.
Your thoughts become your feelings. What you put out, is what will flow back into your life. Be powerful, not pitiful. Keep reinforcing your thoughts that you are determined to be a victor in your life.
Remember that WJFA's forum is here to provide moral support, and or, guidance.
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