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Monday, May 04, 2009

How to Beat Your Debt

Beat your debt! Do not continue to deplete savings of the future. Debt is the enemy number one to seize the dream of many people and most people really do not freeze the debt. Now is a good time to beat them out.

Errors that occur when the debt is taking too much debt and is used for the purpose of the wrong as well. Because the debt is deplete savings, property guaranteed the thing take action and dig holes to close the hole from one credit card to another credit card is only used to meet daily needs.

People may think, just because the bank or the credit card company would provide loans, they necessarily can pay back the loan. People become too focused on the size of the monthly repayments or interest only loan debt than aware that the disease such as cancer which can undermine their financial health conditions. People pay the debt interest rate from time to time, which of course will only enrich the banks and the credit card company, rather unwittingly making us poorer. Already, we still wonder why it always runs out of money.

Do you begin to feel uncomfortable with the fact that?

Uncomfortable feeling that may even save you from debt for life. Money can not buy happiness, but with the money you can make your life easier. But to get money is not free, you must work for it. Unfortunately you can not work forever, even though your life may long after you can not work.

To confront this natural process, we have been given age for many years, but not many people realizing. Once they get the jobs and income, they have the right credit card. From the preface of savings and investment, they buy goods that age could be even shorter than the installment payment.

If you're ready to wipe out credit card debt, then this is the plan:

Know your debt
Knowing the amount of debt repayments each month is not enough, but more than that you also need to know everything that is related to the debt. Make a list to whom you owe the amount of the balance or the remaining debt at this time, the tribes own interest, and installment payment per month.

Learn also about conditions of your loan, such as whether you can get a discount if you pay your debt now or even the penalty imposed because of acquaintance debt before maturity.

Make a priority debt payments list

Make a list of debt payment priority. Charge the higher interest until the least, not the balance of most debts. Where the debt subject to interest most high ranks first priority of payment of debts.


Debt with higher interest rate is like you have an accident and injury bleeding in some parts of the body. Injuries that cause bleeding most certainly will be closed by a doctor first and then close the new injury that is smaller. Because the wound is not bleeding at most, it will soon be threatening the safety of your life because this injury will cause most blood loss. The same logic can we use the debt payment this priority. However, it does not mean we have only one priority debt payment only and ignore the other.

For example like this, if you have three credit card bills that have been swelling. Individual the minimum payment is US$ 3,000 so that the total repayment to the minimum payment of 3 credit cards is US$ 9,000 per month. To resolve this problem then you are willing to set aside US$ 10K per month for the payment of this credit card. Thus, there is excess US$ 1,000 from budget monthly debt repayments. With the priority debt payments give the budget surplus for the payment of this debt repayments that most tribes high. So that the debt with the highest interest rate is US$ 4,000 while other debt with interest rates lower each US$ 3,000

If the debt with the highest interest rate is paid, then continue with priority debt payments on debt with the next highest interest rate. Give the portion of the payment priority of the first installment debts that have been paid earlier to increase the payment the next priority debt repayments, and so on.

Stop using credit cards
By the way, although we have a strategy debt payments priority list, but this plan will not succeed if you just keep increasing the number of credit card debt. In other words, if you want to put some credit card bills that increase, then stop to increase the amount of debt. Stop the credit card, and you pay only shopping with cash or a debit card from you.

Leave your credit card at home if you do not want to use. Use the card only for emergency purposes. If you need to cut your credit card and save other one credit card with a credit limit for the most vigilant. Regardless of how you use that effort put in credit card debt, no matter howsoever strange. During can help you build habits can use a credit card is good, do it. You may be considered extreme or miserly old. Well, you are suffering from debt that they are not continuous. You are responsible to pay the debt; other people may have been too busy with their own debt problems.

Of course to do 3 steps eradicate this debt is not easy, but many people who already do so. The result, from day to day they are close to financial freedom than to go see it far. I am sure you also want the same thing.
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