Throughout my tenure as your local debt reduction doctor I have come across many questions from eager readers who are looking for a leg up on the competition in the debt reduction world.  Many times I don’t have the time or energy to respond to every particular request, but I figured it would be appropriate to take some time and answer some of these questions right here in an attempt to let everybody benefit from these answers.  So, without further ado, here we go.

Dave H. Chicago, IL – Dear Doc, I have spent a seemingly endless amount of time trying to save money and control impulse purchases but still never seem to be making a dent towards my credit card debt. What should I do?

Dave, this is a very common problem that thousands of people face every day.  It seems that no matter how hard you work to save and save you still cannot make any headway towards your credit card debt.  The odds are that you are facing an account with a high interest rate that is preventing you from becoming financially secure.  Your best bet is to look into a balance transfer into an account with a lower interest rate.  This will allow you to save more money and pay off your balance at a much more rapid pace.

Janice R. Portland, OR ñ Debt Reduction Doctor, I have several different credit card accounts that are beginning to get out of hand.  I recently closed the accounts to start making payments on them but the interest levels are still killing me.  What do you recommend?

Janice, your problem is very similar to Dave’s in terms of the solution.  Since your accounts are closed you don’t have to worry any longer about making more purchases with the cards, but the interest will continue to accumulate until you pay off the remainder of the debt.  I have mentioned before that the best tactic in this scenario is to pay off the highest interest accounts first before working your way to the accounts with less interest.  Continue to make minimum payments in your low interest accounts and spend your extra money on closing out your higher interest accounts.  Keep working this strategy until you pay them all off and are free of credit card debt!

Scott P. Jacksonville, FL ñ Dear Debt Doctor, I have heard recommendations on investing as a quick way out of debt. Is this true or just another rumor that is going to cost me money?

Scott, this is a very specific situation. Investing can be a fabulous way to raise more money and reduce your debt, but it can also be a way for you to lose money and put you further in debt.  Honestly this situation has more to do with your comfort level than my advice.  Whenever I am giving financial advice I always tell people to go for what they feel is best because they know themselves and their budget better than anybody else.  This is your call Scott, just know that it can work both ways.

These are just a few of the questions that I have been asked recently, and I am hoping that my responses were helpful.  Much of this process comes down to determination and self control, and if you are able to show such things you are usually going to be in fair shape.  None of my advice in this column is anything different from my previous work, but sometimes it is nice to get a refresher course.  Getting out of debt is a simple idea but a complex process, so always remember to be diligent and seek help whenever you need it.

I have often heard that I am too negative when I am trying to teach my approach to debt free living.  I often hear the phrases, lighten up, or be easy, as if these small bits of advice are going to change the way I feel about this situation.  Honestly, this is not the most uplifting line of work, and the people who commonly seek my counsel are in difficult situations and they just want an exit.  However, I have put all that behind me, for this entry at least, to help produce a positive reinforcement to all my readers out there who might need a little pick me up!  So, without further ado, here is my go get’em speech of the week.

If you are one of the millions facing debt right now, and if you’re reading this odds are you are, do not fret!  You are certainly not alone.  Almost every other person you see walking down the street is facing the same financial crisis you are.  Sure they make more or less money than you, but they still pay bills and taxes and have other financial demands that they cannot always meet.  You are not alone in this seemingly endless cycle of debt and frustration, so do not feel like some sort of social outcast.

It is often embarrassing for people to admit their financial struggles, and it is not something that is often discussed at dinner parties or in open forums.  However, talking and sharing stories that either helped or hurt you in the past may prevent similar instances from happening to others.  If somebody is able to share with you an example of something that bit them in the financial backside, wouldn’t you be interested in hearing about it so you could avoid it yourself?  Share with your friends or family the different experiences you’ve had, because you are certainly not alone in this fight.

Another great way to begin to feel more positive about your financial stability is to speak to a financial advisor.  Now I have recommended this several times in the past, but this time it is for different reasons.  Of course they can help bring stability and reason to your budget and expenditures, but they can also give you the personal touch that internet forums just cannot provide.  They can contribute with positive encouragement, and can help let you know when you are on the right track or making fiscally responsible moves.

It is easy to let the despair of debt creep over you like a looming sunset, but that doesn’t have to be the case.  This is not purely a gloom and doom situation, there is plenty of positive hope as well.  Thousands and thousands of people have escaped debt’s clutches and lived to tell about it.  Odds are you know some of these people, some even better than you think.  Seek them out and ask their counsel and advice, odds are they will be more than willing to help you out.

I hope that this small, yet strongly worded advice letter is enough to make the pundits quiet down about the constant gloomy rain clouds that I seem to make appear whenever they read my letters.  If not, so be it, but just remember to stay positive.  Debt is not some abstract monster that is invincible.  In fact, you control debt much more than it controls you.  If you are able to remember that simple fact and put it into action you will be out of it in no time.