Get out of Debt Faster
Getting out of debt is something that every person needs to do. It can cause so many problems. Living pay check to pay check, not having money for auto repairs or household repairs, or even to buy something as simple as paper.
You need to gather all your things together. Credit card statements, mortgage statements, bank information and sit down with a notebook. Make a list of everything you are paying out and what you would like to do. If paying off your credit cards is one of the top then write it down.
Setting up a budget
Next you need to figure out how much you spend monthly, weekly, or biweekly. This is according to how you are paid. You do not need to pay everything in one week. If you are paid weekly, divide your bills between those weeks.
Let me give an example; Ok so I have a mortgage and two credit cards, but I also have cell phone payment, water, lights, cable, car insurance. Of course I may have more than that. But I figure out if I make enough in each week to pay two or three bills or just one. One week I pay water and cell phone, next week lights and mortgage, next one is cable and car insurance, and the last is the credit cards. Not trying to pay everything all at once means you can set aside money to help make it through the week.
Paying Debt off faster
Here is the fun part. After you have your budget set up, you know how much money you have left over after paying bills. This money needs to be divided. You have a savings, fun money, and money you can use to pay off debt.
Now if you are one that doesn't have a savings, then your best bet would be to pay off the debt or as much as possible and then start saving. But let me give a secret. If you pay even $5 more on your bills a month, it helps by going straight to the balance and not interest. One of example I can give is this. Say I owe 600 on a credit card, my payment is 15 a month. I'm going to pay 50 a month, meaning 35 of it goes straight to the balance. It would take less than a year if you done it properly. Set a goal and don't get discouraged.
It's even possible to pay your house off many years ahead of time. Just by sending in extra money each month. Imagine not having any debt, how much could you save then? If your house payment is 500 a month and you have 3 credit cards at 50 each, as well as a car payment at 420, that would be 1070 left over a month.
But it's only possible if you do it.
No comments yet.