| |
| |
|
Debt Relief Information |
|
|
|
The Simple $10 Debt Elimination Solution
Ask a friend what resolutions they made for 2004 and your bound to hear them reply "Pay off my credit cards." Ask them how they planned on reaching that goal and many of them will not have a clear cut answer. The obvious first step to paying off credit card debt or paying down credit debt load is to cut back or eliminate the use of your credit cards. For some people this first step can often be the most difficult. If you're used to spending freely with plastic and worrying about the consequences later, it's difficult to break free from this "buy now, pay later" attitude. To gain control of their careless credit card spending habits, some people cut up their credit cards therefore making it impossible to use them. Others lock up their credit cards or hide them in a safe place and vow to use them only in an emergency. The second step to paying down credit debt is to pay more than the minimum balance due. Most credit card companies require a minimum monthly payment of 2.5% of the outstanding balance. For example, if you have an outstanding balance of $1100.00 on a credit card charging an Annual Percentage Rate (APR) of 18.9% your minimum monthly payment would be $27.50. It will take you 66 months or 5.5 years to pay off your balance of $1100.00 making the minimum payments. The credit card company will make $676.94 in interest from your use of their credit card. Monthly payments are purposely kept low by the credit card companies so that they can earn as much as possible from the interest rate charged to you the consumer. Paying just the minimum payment will keep you tangled in credit's web for years and years to come. If you've been paying only the minimum due month after month, ask yourself this question, "Do I have an extra $10.00 I could apply to this month's payment?" I'm sure that most of us could find some way to come up with an extra $10.00 for the month. Try cutting out a few cups of coffee or lunches at your nearby fast food outlets and in no time flat you'll have saved up the extra money that you need. Now, it's time to unveil "The Simple $10.00 Debt Elimination Solution." Take that extra $10.00 and add it to the minimum monthly payment above, therefore making a payment of $37.50. By adding just that $10.00 a month to your minimum payment, you'll trim 23 months or nearly two years off of that credit debt! On top of that you'll save $277.00 in interest alone! That's money you can put toward savings or paying off other debts. Imagine how much you'd be able to save if you applied this same simple strategy to each of your other credit card debts! Paying down credit debt doesn't always mean having to make huge monthly payments or sacrifices. It just takes some basic planning and a simple effective strategy to make it work. © 2004, www.yourfreecreditreportnow.com About The Author James H. Dimmitt. James is editor of "TO YOUR CREDIT", a weekly free newsletter to help you manage your personal finances. Subscribe to the newsletter by visiting http://www.yourfreecreditreportnow.com. He is also author of "Identity Theft - How to Avoid Becoming the Next Victim!" available at http://tinyurl.com/bc45; jimdim815@aol.com
MORE RESOURCES:
Debt-Relief - Google News |
|
|
|
RELATED ARTICLES
Stop Debt Collectors Can you stop debt collectors ? . . 5 Ways to Get Out of Debt It has been said that everyday more and more people in the world are getting into unsecured debt. Once reason for this is the relative ease in which credit card companies and banks are extending credit to their customers. Debt Free Living - 5 Tips To Get Out Of Debt A few times I wonder what sort of credit system moved the global economy 200 years ago. If the intention of getting into a business is meant to 'help' fulfill the needs and wants of someone, I don't see how credit card salesmen can drove more people into debt and backruptcy. Yes to Less Debt Feeling stressed by the amount of debts you have? Three years ago Michelle was struggling on a nurse's salary. She had run up huge debts with a number of court judgments against her name. Free Quick and Easy Money Saving Tips - Part 1 With the high cost of gasoline and the amount of money needed to lead a comfortable life slowly increasing many consumers may be worried about how to make ends meet. Fortunately there are lots of ways to save money in a variety of areas. Bankruptcy - Bankruptcy Myths Bankruptcy has long been a big question mark in the eyes of the consumer. After all they don't teach us about bankruptcy in school. Out of Credit Card Debt - Without Filing Bankruptcy To be out of credit card debt is your dream and you're tired of the redundant advice to live within your means. Look no further. Currency Trading Fee Concept Troubles with Global Economy; Do you see future problems with our global economic plans to make a one world system, where free trade and prosperity can rein the world over. Many world leaders have agreed a one-world system is best for all. Credit Card Debt & the Unfairness of the Universal Default Clause Let's look at a real world example: A woman purchased a new $4,000 large screen TV a few months ago based on the knowledge her monthly payment was going to be $175, and based on the 9% interest rate charged by her credit card company. For five months straight she made all her payments on time, but in the fifth month she was late paying her mortgage bill, for reasons unknown. How to Negotiate Debt Settlements Knowing how to negotiate debt settlements is the key to securing your financial future. Debt negotiation is the process where in you will contact your creditors and will appeal to them with an offer to pay off the amount you owe in easier installments that decrease the principal quicker. Life After Debt - Strategies for Dealing with Problem Debt Honorably and ethically rid yourself of burdensome debts using the little known Negotiation Strategy, without having to experience the loss of control and privacy associated with filing for bankruptcy, consolidation, or credit counseling.The inability to reduce debt and saving money are the two biggest obstacles preventing Americans from living financially sound lives. Mr. Cheapies Frugal Budget Tips So you feel like a hamster spinning your wheel? The faster you run, the faster the wheel spins. Just when you get a raise, you notice the price of hamster wheels jumps!Mr. Debt is The Master of Souls Wholeness requires separation. In order for you to experience yourself as being whole, you spend most of your live experiencing being separated, trying to get back to wholeness. How to Get Money When You Are Broke (Money You Don't Have to Pay Back) 1. One way to get money is to have a yard sale and sell itemsthat you are getting ready to toss away because you don't wantthem any longer. Bankruptcy: Who is to Blame? If you are considering bankruptcy as a solution to your financial problems, you are not alone. Bankruptcy is on the rise in this country as consumer debt piles higher and higher. Debt Elimination If you're reading this article right now I'm sure that you are looking for a debt elimination system that will help you get out from under you personal mountain of debt. Hopefully you're not looking for the magic pill that will suddenly dissolve your debt problem. Secrets to Why Debt Reduction is So Vital for Your Financial Health Living with debt is never a good idea if you want to make long-term financial plans. Every cent you use to service debt is money that could have been invested in your future. The 5 Secrets to Getting Out of Debt Fast As they stare down at a teetering pile of bills, so many consumers wonder how they racked up such a large debt. The answer boils down to simple mathematics. Reducing Debt Before Its Too Late - How to Avoid the Pitfalls of Creeping Debt Reducing debt usually isn't a high priority for people until they have already gotten into trouble with overspending. Using a few basic guidelines, and debt calculations, can help you see when your debt load is getting into the danger zone. 4 Simple Ways to Solve Your Debt Burden Getting Behind Getting behind on your debts owed can be a very frustrating and trying time for you and your family. Depending on how far behind you are, there are other repercussions, such as your credit rating, that will affect you further down the road.
|
| home | site map |
| © 2006 |
