A Do-It-Yourself Debt Reduction Program
Posted On June 29, 2019
Do you need a reduction of debt program not alone? Below are Five useful information on reducing debt that you can do right now.
1. Knock Off Using Credit. If you have not done this one, then this is the place to start. Put the credit cards and line-of-credit checks under lock and key and operate as if you don’t have them at all. Figure out how to make more income and pay cash instead. This is the single most effective action you can take.
2. Never Commit to Spending More Than Your Income. When you pay for an item with credit because you don’t have the cash you are committing your future income to pay the credit company.
Then you experience economic slavery. Ask yourself if you want the item or if you need it to increase your production of income. If you need to figure out how to make the cash to pay for it over a short period rather than buying on credit. Find ways to increase your income and use it to pay both current expenses and pay off credit debt.
3. Always Pay More than the Minimum Payment Needed. Your debt reduction method will likely be most effective if you carve out at least 10% to 15% of your income. Use this money to scale back debt. Set a target of paying 3 to five times the minimum monthly payment on every credit card.
Set aside some of the payment money every week until the statements arrive. It is always easier to save small amounts over four weeks than pay a large bill all at once. Your credit card payment strategy must also include paying more on the highest interest rate card. Another method is paying off low balance cards as fast as possible. Once you pay those cards off the money that you were paying on those cards can be paid against the highest interest rate cards.
4. Never Pay Late or Spend Over Your Limit. Do not destroy your debt reduction strategy by getting hit with late payment or over-limit fees of $25 to $39 on which you’ll pay interest. Plus if you spend over 30 days late that black mark stays on your credit record for seven years ‘ a harsh penalty to pay.
Do you think the credit card company minds if you pay late or go over your limit didn’t want you to spend over the limit they could have declined the charge right’Trim down Expenses? Reducing debt needs as much cash as possible as fast as possible. Look closely at where your income is being spent and trim down any expenses that don’t bring about the production of more revenue. Before you pay to figure out how much money that purchase is going to bring back into you your family or your business.
TIP: If you are a business owner, always advertise your business to everyone ‘ do not reduce that activity. Make sure you’re getting good sales out of your promotional activities than it costs to promote.
Correctly managing the money in a business or household to ensure its survival takes more than a debt reduction program, but this is a great place to start. There are other steps that you can take to increase income pay bills on time have cash reserves for emergencies increase profits and pay yourself more money. Who doesn’t want that right’ learn to want more about debt and credit help visit our website about Debt and Credit info where you will find additional information and content.