The truth is there really a way to make debt reduction plan that accelerated them who can see you are free from debt and also teaches important lessons about financial responsibility at the same time.
Before you get started
Perhaps the best way to start working on debt reduction plan is accelerated by considering budget and spending habits. Create budgets quickly or write a list of income and expenses so you know how much your spending. If you can see any areas at all where you might be able to cut back your spending, then work on this now.
Many people believe that trying to save 50 cents on a grocery bill is the right thing to do when they’re trying to reduce debt. Instead of worrying about your living expenses, take a look at how much your consumer debts are costing you. If you didn’t have to pay those every month, how much of your income would you have left over for yourself?
Work on finding ways to reduce the amount of interest you pay each month. This could mean catching up any delinquent payments to stop those penalty fees from accumulating. It could also mean consolidating some of the more expensive debts into a lower interest option.
If you have the option, then consider transferring the balance of a high interest credit card over to a low or no interest option. Once your interest costs have been reduced, take advantage of that introductory period to pay down as much of that balance as possible before normal interest rate charges start again.
While it’s not possible for everyone to walk into the boss and demand a pay rise, there are other things you can do to raise some extra cash to get rid of those debts. Millions of dollars worth of regular items are sold every day on eBay. Take a look around your home and put anything you don’t use any more on eBay.
If this doesn’t appeal to you, hold a yard sale and see if you can raise a little cash this way. Not only will you be un-cluttering your home, you’ll be un-cluttering your debts at the same time. Whatever money you raise, put this immediately towards paying down your debt balances. This will give you a huge head start and keep your motivation high.
If you manage to reduce the cost of your monthly repayment, debt reduction is the fastest method is to have the discipline to allocate the savings to pay the extra for the debt to you.
Whenever you receive a raise or a bonus or a little extra money from any source, put the direct balance of your debt. Many people hate this part of the discipline stage, preferring to spend bonuses on treats.
Tag : Finance