Each month you pay the minimums and although
you KNOW you've got
a handle on it - you are not charging your credit card or
accumulating new debts anymore - it seems that you will be
paying the minimum fees forever.
Did you know that HOW you pay your debts can affect how soon you
will finishing paying them off - even if you keep paying the
same amount for debt every month? Of course you might be able to
get a consolidation loan, but if you're not eligible or are not
interested then there are several other things you can do.
It's not always the easiest to figure out the mathematics, but
there are three steps to quicker debt relief - guaranteed.
STEP ONE - Create a list.
List your smallest debts first followed by your largest
high-interest debts (credit card) and then your largest
low-interest debts (Lines of credit and taxes).
Plan to pay the minimums on all debts with these goals in mind:
STEP TWO - Small bills first.
They may not be the highest interest, but every bill that you
are paying some interest on means you are usually only paying
minimal amounts on the principal. Multiple debts are also a sure
way to bring your spirits down. Paying off small debts first is
a quick way to start checking them off - and freeing your mind.
STEP THREE - Move the payments along.
When one debt is paid add the funds to the next debt. For
example, say you're making $75 payments to a small debt. When
the debt is cleared add the $75 to the next debt on your list.
If the next debt had a minimum payment of $100, you will now pay
$175 until it is paid off. When that one is finished, take the
$175 and add it to the next payment and so on.
STEP FOUR - Save the cash!
Don't forget that when your debts are cleared you have set
yourself up for a better financial future. The best way to take
advantage of your new situation is to use all the money you were
spending on debts and start investing or saving it every month.
With this strategy your debts will clear faster meaning you will
pay less interest, you will see progress as you clear small
debts first, and you will not be tempted to use the funds for
personal use instead of debt repayment.
It is a worthwhile goal to get out of debt. Seeing that goal
come sooner and teaching yourself discipline sets you up for a
brighter financial future. You OWE yourself that!
By James Louis writes about things that impact our society. His
years of experience in finance prompts him to write about and
share his insights about different aspects of the financial
world. One of those insightful subjects is payday loans. For
more information visit:
http://www.payday-loan-site.com
