Thursday, April 18, 2013

Personal Finance News Thursday 4/18

Phil's Personal Finance Tip of the Day:

Spring Cleaning for Your Finances

By Benjamin Feldman | Credit.com 

Spring has traditionally been a time for cleaning our homes and clearing away the clutter that has accumulated throughout the winter. It’s a satisfying approach to the season because it gives us the feeling of starting fresh. There’s no better way to put a spring in your step (no pun intended) than by freeing yourself of unnecessary messes.

And that is true for your finances as well. So why not embrace the concept of a financial spring cleaning this year? Below, we’ll look at ways you can organize your financial life to make sure the rest of your year is as peaceful and prosperous as you’d like.

Organize Your Debt Repayment

It’s safe to say that none of us want to be in debt, and yet for those of us who have debt it can be exceptionally difficult to conquer it once and for all. So why not take this opportunity here at the beginning of spring to organize your debt and make a clear plan for paying it off?

The thing about being in debt is that you often get overwhelmed by the numerous bills, statements, due dates, interest rates and fees. This clutter of paper and percentages and numbers can wear you down.

That’s why a spring cleaning is necessary. Take all your debt accounts (student loans, credit cards, auto loan, etc.) and write down your total balances for each one as well as the interest rate for each one. It might look something like this:
  • Sallie Mae Student Loan: $9,000 (6% interest rate)
  • Bank of America Credit Card: $2,000 (15% interest rate)
  • Macy’s Credit Card: $550 (12% interest rate)
Next, compare the minimum payments and make a plan for how you are going to pay off all the debts. Decide how much you can afford to pay above the total monthly payments and resolve to dedicate the extra towards the debt with the highest interest rate.

To read the entire article from Benjamin Feldman | Credit.com:
http://finance.yahoo.com/news/spring-cleaning-organize-finances-060137286.html


Inspirational Quotes@Inspire_Us from Twitter:
When you get to the end of your rope, tie a knot & hang on. -Franklin D. Roosevelt

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.



 



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