Your Life for Less

The Debt Diva offers Tips for Getting out of Debt and Back in Control
COLUMBIA, Md.--(Business Wire)--
The news headlines paint a grim picture. Record job losses. Stagnant incomes.
Rising debt. Stalled savings. One in four consumers say they are worried about
making their monthly payments over the next six months, a four percent increase
from last year, according to a recent Gallup poll. To help consumers climb out
of the debt trap, Clarky Davis, The Debt Diva, offers tips for living life for
less with a self-help approach to debt management.

"Our relationship with money has become fractured," Clarky Davis, The Debt Diva,
says. "Since April is Financial Literacy Month, now is a great time to
reconsider how you`re managing your finances. Every consumer can and should know
how to manage their money and live within their means."

As a certified personal finance and debt expert, Davis uses her hard-won
personal experience with debt to help consumers regain their financial footing.
After finding herself with more than $8,000 in credit card debt, Davis bailed
herself out - in less than three years. Her free, financial guide offers a
self-help approach to debt management with simple strategies for saving money
and paying down debt.

Take Charge of Your Moneyand Start Saving

On average, Americans spend $1.22 for every dollar earned according to a recent
Federal Reserve study. "Budgets provide the financial boundary for us to live
within our means," Davis says. "Establishing a household budget to track your
monthly spending is the first step in taking charge of your money. It`s
empowering to be in charge of your spending instead of sliding further into
debt."

* Find a system that works for you. There are many tools and techniques to track
expenses. A simple worksheet with sections to track monthly income and expenses
is all you need to take charge of your money.
* Track it. Write down everything you spend, so you know where your money is
going. Then, you can make smart decisions about what you really need to spend
money on and where you can save.
* Start a savings cushion. Start small with a goal of saving five percent of
your paycheck in a traditional savings account and another 10 percent of your
paycheck in an emergency fund for unexpected expenses. If you`re getting a
federal tax return this tax season, consider using the money to start an
emergency fund.

Get the Most Out of Your Money

"Creating a lifestyle that fits your budget is easier once you know where your
hard-earned dollars are going every month," Davis says. "Find ways to cut back
where you can by reducing everyday expenses and get the most out of your
money."

* Slash your electric bill by running major appliances like the dishwasher and
washing machine during off peak hours.
* Save on groceries by planning meals and making a shopping list before you hit
the store. Purchase foods that are in season to take advantage of lower prices.
Visit discount grocers and try store brands to save even more.
* Dine and divide. Seek out less expensive eateries that are more in line with
your budget. Split over-sized portions, and the cost of the meal, with a friend.
Cut back on dining out and prepare more meals at home.

Downsize Debt

A recent Gallup poll reports that 50 percent of consumers intend to reduce their
total debt over the next six months. Last year, Americans reached a record of
$951 billion in credit card debt with the average household carrying $9,000 in
debt. Eliminating a substantial amount of debt takes time and discipline, but it
can be done with the right strategy in place, Davis says.

* Create a debt domino. Focus on the credit card with the highest interest rate
and pay as much as you can on that card first, while making at least the minimum
payment on your other debts. When that card is paid off, add that amount to the
next highest credit card and so on and so on. You`ll pay off your debts faster
because you`re applying larger and larger payments. You`ll save on interest,
too.
* Always make more than the minimum monthly payment.
* Make your payments on time to avoid late payment penalties.
* Recognize when you need help. Many people ignore the signs of financial
distress, not wanting to admit when they need help. The Debt Diva says look out
for red flags that signal you may have a problem. Paying bills late;
transferring balances from one credit card account to another to obtain lower
interest rates; depending on overtime at work to cover minimum monthly bills;
borrowing from friends and relatives to cover basic living expenses; writing
checks and hoping they don`t clear the bank before payday are all signs that you
may need to evaluate your financial situation.

"There are many options for consumers dealing with debt," Davis says. "The most
important thing is to do something about it. If you don`t feel you can tackle
the process yourself, there are professional services available to get you back
on track."

Seeking Professional Help

More and more consumers are reaching out to credit counseling professionals to
help with their financial woes. Last year, approximately 686,000 people
contacted CareOne Services seeking debt management assistance, a 47 percent
increase from the 466,000 consumers who contacted the organization in 2007.
Davis says consumers have several options when considering professional credit
counseling services, but recommends consumers check their providers against
certain criteria.

* Reputation - Check with the Better Business Bureau to verify that the provider
you plan to work with is accredited by the bureau. Also make sure your provider
is licensed or authorized to do business in your state.
* Open book - Your provider should clearly state the services you will receive.
* Informative - Provides free budget analysis, as well as financial and money
education.
* At your service - Offers one-on-one customer service available with multiple
contact methods to meet your needs (online, phone, email).
* Affordable - Charges limited fees for debt management services, no more than
$50 per month, with a minimal upfront fee of no more than $50.

"We`re learning from our financial missteps," Davis says. "We`ve lived beyond
our means for too long, content to charge a life we couldn`t otherwise afford.
While frugality may be this season`s hot color, it`s important that consumers
adopt it as an everyday addition to our financial wardrobe."

Davis offers these and many more tips at her website, TheDebtDiva.com. The site
is a resource for financial planning. It includes The Debt Diva blog with tips,
a Straight Talk community discussion forum and links to a variety of debt
management services provided by CareOne.

About The Debt Diva

Clarky Davis has more than five years of experience in the debt management
industry and more than 10 years of hard-won personal experience with credit
cards and debit cards. The money saving tips The Debt Diva offers have all been
tested and proven by the glamorous girl herself. Davis now offers these hard-won
insights to others seeking to maximize their tight budgets and deal with debt.

About CareOne Services

CareOne Services was formed in 2002 to provide consumers with multiple solutions
to complex money problems. CareOne Services Inc. boasts a unique Financial
Fitness Center that examines each consumer's individual financial situation and
develops a personalized solution to help the consumer get out of debt and
strengthen his or her financial footing.

The Debt Diva
Aleasha Vuncannon, 336-553-1705;
avuncannon@rlfcommunications.com

Copyright Business Wire 2009