First thing I did when I tried to reorganize my fiances was entering all my debt accounts and creditor accounts on a spreadsheet. I used Microsoft Excel, but there’s a free option. Just use Google Doc.

This is how I organized my debts.

1. Column 1 – Name of Creditor (Debt Holder)
2. Column 2 – Contact Person
3. Column 3 – Contact Phone & Email
4. Column 4 – Website Address & Login
5. Column 5 – Current Interest Rate
6. Column 6 – Due Date
7. Column 7 – Minimum Payment Amount
8. Column 8 – Total Balance

Then sort the entry by due date so that you have exact idea when each payment is due.  Paying late while you are in debt is the last thing you would want to do.  It will not only ruin your credit, but ruin your chance of getting any great deals on interest rates in the future; in case you need debt consolidation loans and etc.

I’d like to point out something very very important when paying off your debt.

Don’t start paying heavy on debt with the highest interest rates.  Start paying off the smallest debt. Once you are done with it, just snowball it by paying off the next biggest debt.  This tactic helped me get the momentum when I had over 10 debt accounts to payoff.

The simple answer is “it depends”

If you choose the right debt consolidation loan, you’ll have one monthly payment with very low interest rate compared to your ridiculously high interest rate on your unpaid debts. A great debt consolidation loan will have low interest rate plus flexible repayment terms with no prepayment penalty clause attached. In this case, a debt consolidation loan is a good idea.

However, there are the traps, just like all other debt related programs. If you fall into one, you will end up paying more and owning even more debt. You just need to be smart about this. If you choose a wrong consolidation loan, you will end up paying even more money than if you had just paid your bills at the higher interest rates.

Another common trap with some of the debt consolidation offers is the long repayment schedule. Of course the terms depends on the amount of your debt refinanced, but it isn’t like your student loan. If you are not careful, you will own the debt for decades. Don’t do this.

Lastly, if you are not careful with your new spending habits, you will not only fail to payoff your previous consolidation loan, but accumulate new debts in no time. Keep reminding yourself that debt consolidation doesn’t mean your debts are gone. Many of us fall into that trap; going back to our old spending habits.

So is debt consolidation a good idea? in my opinion, it is; only if it is carefully chosen. Don’t get lured by junk mail offers. Just go straight to your bank, preferably a local credit union, for your consolidation loan.

Is it possible to purchase a cell phone plan from the nation’s largest mobile phone providers with bad credit? Here is my story…

Living with a bad credit is not pleasant at all. Well.. it sucks!  Bad FICO score affects many aspects of your finance from house mortgage to a simple thing like getting a cell phone.  Even a simple stuff like purchasing a cell phone plan requires you to have a decent credit with long credit history.  Almost all major cell phone carriers now require credit check when you sign up for a cell phone plan.  If you happen to have poor or bad credit history, they will require a hefty deposit. Otherwise, you would have to have a co-signer and who want to co-sign a person with bad credit. Or go with prepaid cell phones.

When I was in college, I had bad credit score because of credit card collections.  When I signed up for a cell phone plan from Sprint, they asked me for a $250 deposit plus first month’s fee in advance.  Verizon was no different when I checked the price.  I can’t remember how much other carriers wanted to charge me, but I went with Sprint, probably because they had the lowest fee for my credit rating.

After a two-year contract, paying every bill on-time, it actually helped me improve my credit score.  Because of my excellent payment record with Sprint, after just two years, they offered me a better plan without any deposit.  But as you many know already, Sprint was infamous for bad customer service.  I couldn’t stand Sprint’s customer service.  It was almost impossible to talk to a human, and the average waiting time was 30-60 minutes. So I moved my plan to AT&T , then to Verizon. By the time I opened an account with Verizon later on, I had excellent credit score.

So even if you have a bad FICO score, you can still apply for a cell phone plan.  They will just require you to make some deposit or have you bring a co-signer.  Another way to get a cell phone is buying a pre-paid phone.  With a pre-paid plan, there’s no credit check required since the payment is already pre-paid.  All major cell phone providers offer pre-paid plans, so check it out.

This goes same for land-line phones.  Bad credit phone plans for your house will require you hefty deposits and often, they will ask you for a co-signer.  The only way to get out of this mess is improving your credit.  There’s no magic formula when it comes to repairing credit history and FICO score.  Spend less then you earn, pay your bills on-time.  Eventually, you will get out of debt and improve credit score.