How can I eliminate my debt?
Your Personal Finance Magazine Finances ~ Banking ~ Investing ~ Financing ~ Credit Cards ~ Insurance
You are here: Home: Finances: How can I eliminate my debt? Wednesday ~ November 22 ~ 2017 RSS-Feed Syndication
  Category: Finances

How can I eliminate my debt?

Stop wasting your money ...

 
The latest articles
 
Making money on the side with a model job
Working as a model is the perfect way to make some money on the side with a part-time job that does not require … more
Category: Finances
 
Incoming insurance for foreign guests and visitors to Germany
In the event that foreigners visiting Germany, Switzerland and other Schengen countries are taken ill, the medical costs can be covered by an … more
Category: Insurance
 
Saving money on your grocery bill
Many people pass over the coupon pages of the Sunday newspaper without even giving it a thought. If you found a dollar bill … more
Category: Finances
 
The Rent-to-Own Trap
You see a TV set at the rent-to-own center that you like. It's a big-screen version, complete with high-definition capabilities and a remote … more
Category: Finances
 
For most people, the best way to reduce debt is a three-pronged program:
1. Reduce expenses.
2. Increase income.
3. Pay off each bill one by one.

That are not steps to take one at a time. You must focus on all three - day by day and month by month.

Pare your expenses down to necessities. You need to buy food; you don't need to eat out at a restaurant. You need to pay your rent or mortgage; you don't need to take weekend trips to expensive resorts or hotels. You need to buy gas to drive to work; you don't need to cruise around the mall.

Shop on a cash/debit card only, "pay as you go" basis. You can't get out of debt by borrowing more money.

Many financial experts advise you to spend a week writing down everything you spend money on. This is meant to shock you into realizing just how much money you are wasting. When you're reaching for your wallet or purse, ask yourself, "Is this really a necessity?" You can wake up without spending $5 for a supercaffeinated drink (and your heart will thank you). You can wear some of the clothes already hanging in your closet instead of buying a new pair of slacks or a dress. You can wear shorts and a t-shirt around your house instead of keeping your air conditioning turned down to 60 degrees.

Think about how hard you work for your money on your job. Do you fight rush hour traffic every morning and put up with your boss just so you can throw your money away? What sense does that make?

Reducing your expenses can also include reducing the interest you pay on your credit card balances. If you're receiving offers from credit card companies competing for your business, it's okay to take advantage of lower interest rates by transferring balances from one card to another. Yes, the teaser rate will go up to a normal rate in a few months, but you've saved some money those first few months. Just don't charge more money to any of your cards, and continue with your entire debt reduction program. You goal is to eliminate all credit card debt no matter what interest rate you're being charged.

As you stop wasting your current income, think about how to increase that income.

Clean out your basement and garage, then sell everything you don't need on eBay. Then redirect your shopping expertise to finding bargains that you can resell on eBay for a profit. Thousands of people make a part-time income on eBay, and for more people than you realize, it's a full-time, upper-middle class income.

Can you get more overtime on your job? Can you work part-time in your field? Can you work a part-time job? Do you have some skill you can practice on a part-time, freelance basis? There're many ways to make money online in a business or by providing a service.

Marketing consultant Jay Abraham advises people to sit down and make lists: everybody you know, all your accomplishments, all your skills, and all your interests. Then think about how you can help other people. You may well find that this step not only helps you pay off your current debts, but launches you into a venture that enables you to quit your current job and, eventually, makes you wealthy.

The more you reduce your expenses and increase your income, the more money you have available to pay down your debts. Make only the minimum monthly payments on all your bills, except one.

Choose the one debt (usually this will be a credit card) with the highest interest rate and the lowest balance. Every month, pay as much on this card as you can until it's paid off. Then focus on the next most expensive card or next lowest balance. Once you've paid off all credit cards, focus on medical bills and student loans. Then save enough money to pay off your car note.

Celebrate your achievements, but don't allow yourself to go back to spending more money than you make.

If you have adverse personal circumstances that prevent you from taking these actions (medical, financial or other hardships) it may be to your advantage to: Go to your local Consumer Credit Counseling Service and ask them to negotiate with your creditors on your behalf. Contact your creditors, explain your circumstances, and ask if they will write off your debts or accept a compromise offer (all financial institutions maintain a fund for uncollectible loans). Or file bankruptcy (see an attorney for legal advice.)

Focus on how happy you'll feel when you're debt-free! (don)
 
 
Bookmark
Bookmark to Digg.com Bookmark to Del.icio.us Bookmark to Reddit.com Bookmark to Technorati.com Bookmark to StumbleUpon.com
 
 
Rate this Site:

Average rating: 9.7 of 3 votes.

 
 
Websearch with Google
Porias.com Web
 
------------------------------------------------------------------------------------------------------------------------------------
 
More articles in category Finances:
 
Loyalty Cards
Many supermarkets offer loyalty cards (also known as club cards or rewards cards) to their customers. If you have one of these cards, you can enjoy lower prices and other perks. Some stores automatically enter you in contests every time you use the card. Others use the loyalty card to … more
 
40 instant ways to save
There just isn't enough money. The electric bill can be paid, but everything else is a few weeks behind. Once you are caught up with the most important bills there is enough to buy half of what you normally purchase in groceries, and maybe enough gas to drive to work … more
 
Reducing debt
If you are serious about getting out of debt, you need to change your spending habits. I found that the best way to reduce debt is to figure out what is causing you to keep getting more debt. For example, if you are in debt due to an emergency that … more
 
The Rent-to-Own Trap
You see a TV set at the rent-to-own center that you like. It's a big-screen version, complete with high-definition capabilities and a remote control that looks like it belongs at NASA.You must have this TV. The rental center will deliver and set it up in your living room for 20 … more
 
Saving money on your grocery bill
Many people pass over the coupon pages of the Sunday newspaper without even giving it a thought. If you found a dollar bill located inside the pages you wouldn't throw that away would you? This is what is happening week after week, month after month all over America. You should … more
 
Making money on the side with a model job
Working as a model is the perfect way to make some money on the side with a part-time job that does not require a lot of time. Both men and women basically have the chance to work as a model. While there are more jobs for women, there are much … more
 
 
 
 
 
Your personal finance magazine at Porias.com  
Finances ~ Banking ~ Investing ~ Financing ~ Credit Cards ~ Insurance Copyright © 2005- Porias.com ~ All rights reserved
Schlieίen