Phil's Personal Finance Tip of the Day:
Resolutions 2013: Getting Rid of Debt
By Angela Colley | Money Talks News
If you vowed to pay off your debts and start living a more balanced financial life this year, we’ve got you covered.
Now, let’s hash out the details and get you on your way to financial freedom.
1. Make a list
Start by gathering all your bills – current credit card statements, car loan and mortgage statements: all documentation, online or off, that shows what you owe. Can’t find a balance? Call the lender and ask for it.
Now put it all in one place: list all your debts, along with minimum payments.
2. Pick a debt to destroy
Once you have a list of your debts, pick one to focus on. There are two schools of thought on which to begin with – the debt with the highest interest rate, or the one with smallest balance.
Mathematically, paying the debt with the highest interest rate makes the most sense. Motivationally, however, focusing on the smallest debts provides quick victories, which keeps you going.
Whatever method you decide on, pick a debt and start destroying it. Pay the minimum on all other debts, but as much as you can on your target. In his book Life or Debt, Stacy recommends setting aside 10 percent of your monthly income as a “debt destroyer.”
Where will you find the extra money to create a debt destroyer? By tracking your expenses and squeezing every possible penny from your budget. Use a website like PowerWallet to automatically track your expenses.
To read the entire article from Angela Colley | Money Talks News:
http://www.moneytalksnews.com/2013/01/02/resolutions-2013-getting-rid-of-debt/
Inspirational Quotes@Inspire_Us from Twitter:
Behind me is infinite power, before me is endless possibility, around me is boundless opportunity. - Author Unknown
No comments:
Post a Comment