Paying Off Debt

If you have any kind of debt you are loosing money daily and going further in debt.

If you are ready to move from a life of debt filled with stress and worry into a life of debt free living where you have financial choices and stress free sleep at night here are*Six steps to plugging your money leaks, *Understanding some basics about finances so that you are as effective in your efforts as possible, *Becoming proactive when it comes to your financial wellbeing because It’s all about you and your goals - nobody else!

 

Stop using your Credit Cards:

This is the #1 recommendation commonly advised by financial advisors. If you are using your credit card to buy daily needs or fund impulse purchases – STOP! Leave them at home until you develop stronger money disciplines. However there are ways to leverage your credit cards in accelerating the pay off of debts but you need to have debt management software that understands these principles and guides your financial transactions with mathematically calculated executions.

Know your Debt-To-Income Ratio:

Most people don’t have a matter-of-fact knowledge on their debts vs. income. Most just passively approach their bills and have a “I’ll pay it off  sometime“ attitude, they are ignoring the reality because they are afraid of it. How can you achieve your financial goal if you don’t know what it even looks like? Just playing defense when it comes to your finances is not a balanced strategy you need to play a strong offense as well.

Get The Details:

Knowing the details about your enemy is half the battle in paying off debt. In order to plan an effective plan of attack you must know how many debts you have, what the interest rates are, what the balances are, the types of debts they are (open ended-closed ended, secured-unsecured), what the remaining months are, months already paid.

Reduce Interest:

Some simple steps can literally save you thousands of dollars. Asking your lenders for a lower interest rate will give you more leverage and get you on the fast track of paying off debt. You can negotiate with your credit card company for a lower rate, particularly if you have had them for a period of time and are in good standing with the company in way of no late payments, or over the limit balances. Call them up and request a lower interest rate shoot for 9-12%, if you don’t get the results you desire ask to speak to a manager or supervisor, most call center personnel don’t have the authority to make changes to your account.

Have a Strategy:

Know what your monthly discretionary income is (left over money after all the bills are paid) know when bills are due, when your income comes in, what your freedom from debt date is, what you will do with extra income (tax return, bonuses, raises, seasonal income, part time jobs, home based business income) apply some discipline here, you will want to get the biggest bang for your buck and maximize your money’s performance so you reap the financial benefits.

Plan Your Rewards:

Paying off Debt boot camp can become monotonous. Rewarding yourself will help motivate your discipline. Having a visual goal will help you stay on track and could even improve your performance and results.

Bottom Line - This is your money we are talking about here, you need to decide if your are going to just give it to someone else (credit card companies, mortgage company, banks) or if you are going to keep as much of your own money as possible.