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Excerpts

CONTENTS

INTRODUCTION

PREFACE

STEP 1. HOW LENDERS SEE YOU

YOUR CREDIT REPORT

WHAT'S IN YOUR REPORT

GETTING A FREE COPY OF YOUR CREDIT REPORTS

WHAT YOUR CREDIT REPORT LOOKS LIKE

WHAT TO DO WITH YOUR REPORTS

IF YOU FIND A MISTAKE

YOUR CREDIT SCORE

GETTING YOUR FICO SCORE

NEW KIND OF CREDIT SCORE

IMPROVING YOUR CREDIT SCORE

BEWARE OF CREDIT REPAIR SERVICES

STEP 2. UNDERSTANDING DEBT

HOW MUCH DEBT DO YOU HAVE?

HOW MUCH DEBT IS TOO MUCH?

UNDERSTANDING HOW INTEREST RATES WORK

REVOLVING DEBT

INSTALLMENT DEBT

GOOD DEBT VERSUS BAD DEBT

STEP 3. STOP OVERSPENDING

LIVE ON A CASH-ONLY BASIS

EVALUATE YOUR SPENDING HABITS

WANTS VERSUS NEEDS

SET A BUDGET

SHOP SMARTER

STEP 4. NEGOTIATE WITH YOUR CREDITORS

WHY BANKRUPTCY ISN'T AN OPTION

HOW BANKRUPTCY WORKS

CHAPTER 7

CHAPTER 13

LET'S MAKE A DEAL

RESPONDING TO DEBT COLLECTORS

IF YOU'RE FACING EVICTION

STEP 5. PAY ON TIME

SET YOURSELF UP FOR SUCCESS

ORGANIZE YOUR PAYMENTS

WHO'S HELPING WHOM?

USING CREDIT CARDS WISELY

SHOPPING FOR THE BEST DEALS ON CREDIT CARDS

STEP 6. PAY IT OFF

WHAT TO PAY FIRST?

CREDIT COUNSELING SERVICES AND DEBT CONSOLIDATION

SHOULD I TRANSFER MY CREDIT CARD BALANCES?

STEP 7. ADD POSITIVE INFORMATION TO YOUR FILE

MANAGE THE CREDIT YOU HAVE

APPLY FOR A SECURED CREDIT CARD

APPLY FOR A SMALL LOAN

THE COSIGNING OPTION

PATIENCE IS THE KEY

STEP 8. DON'T GET RIPPED OFF: PART 1

AUTO FINANCING

KNOW WHAT YOU CAN AFFORD

NEGOTIATING THE PRICE

EXPLORE YOUR FINANCING OPTIONS

IF YOU CAN'T PAY

A NEW SCAM EVERY DAY

MORTGAGES AND PREDATORY LENDING

TYPES OF MORTGAGES

COSTS AND FEES

SIGNS OF PREDATORY LENDING

GOVERNMENT PROGRAMS

STEP 9. DON'T GET RIPPED OFF: PART 2

PAYDAY LOANS

REFUND ANTICIPATION LOANS

COSIGNED DEBT

STEP 10. AVOID MAKING THE SAME MISTAKES AGAIN

MAINTAIN SELF-CONTROL

PAY YOURSELF FIRST: SAVINGS PLANS

EMERGENCY FUNDS

THE STOCK MARKET

LONG-TERM SAVINGS PLANS

OTHER TAX ADVANTAGES

EARNED INCOME TAX CREDIT (EITC)

CHILD AND DEPENDENT CARE CREDIT

CHILD TAX CREDIT

EPILOGUE

ACKNOWLEDGMENTS

SOURCES