Here is a tried-and-true five step formula for using your monthly surplus to wipe out your debt in the fastest possible time.
Stop adding to your debt. Today. No exceptions, no excuses. Obviously, you can’t get out of debt if you keep going into debt. The remaining steps will not work if you fail to stop.
If you’re carrying credit card debt from month to month and paying those nasty finance charges... you’re probably already looking for a way to dig out of the credit card hole. So, how do you do it? Check out the list below for tried and true methods of reducing your debt without losing your mind. With a good plan and a bit of discipline, you will soon be on your way!
Finance Charges are those nasty fees the credit card company (and others) charge you to use their money. They include all the interest costs and all related transaction costs.
Be aware that not all interest rates are created equal!
How about a financial health checkup?
If any of these twelve warning signs describe your current state of affairs, you are “past due” to get on the road to recovery. Knowing where you are is a good first step. So don't be discouraged if you find yourself on this list. Together we'll find some solutions.
A nation, business, or home built on debt is owned and controlled by outside forces. There is no freedom or liberty to be found in leverage, only obligations and payment plans. Debt is unemotional and uncaring when it decides to call your loan, or make new demands you are unable to fulfill. Debt is deceptive in its ability to draw us into its pleasures in exchange for our time, energy and focus.