How to Get Out of Debt: A Step-by-Step Guide to Financial Freedom.
Without debts you are on the path to prosperity. Without debts it's easier to build wealth.
And Secrets that your debt collector doesn’t want you to know
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To get out of debt, you need a plan, and you need to execute that plan. But that can be easier said than done.
You’ll need to make all necessary adjustments to your budget along the way so you don’t overspend and slide back into debt. Plus, if you don’t have an emergency fund, consider setting some money aside in savings before you get started on your plan.
Get-out-of-debt checklist. Keep it someplace where you’ll see it often.
Get Prepared to Get Out of Debt
If you want to do this right, you want to make sure that you know where you stand before you start. You need to have a complete picture. Here’s what you need to do.- Gather your most recent statements for all loans and credit cards.
- Get your free credit reports to check them for accuracy and to identify all debts. Access to Free Annual Credit Report..
- Get your free credit score at knowledgefinancial.com to find out whether you can lower your rates.
- Check the National Student Data System to gather all student loan information.
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Make A List
Having everything written out in front of you is really the key to success here. Plus, once you’ve written it all out, and it’s right there in black and whiteMake a list of all your debts: name of creditor, interest rate, balance, minimum monthly payment.
Lower Your Rates
Paying high interest rates on existing debt causes your debt to really mount up, and makes paying it off much more difficult. If possible, you want to lower those interest rates. Here’s what to do:
Get Your Number
Once you know what your total payoff number is, you’ll have a real, complete goal to work towards.- Total the three-year pay-off amount for all your credit cards.
- Add the monthly payments for all other debts.
- Write down the result: Your Total Monthly Payment.
Plan Your Strategy
There are plenty of ways to attack this problem and you’ll likely approach this using a variety of tools and methods. Plan your strategy carefully.- Determine if you can afford to pay the Total Monthly Payment until your debt is paid off.
Monitor & Adjust
Once your plan is set, don’t get too comfortable. You’ll need to track your behavior closely to make sure you’re making progress, and you’ll want to make adjustments when necessary.Get a totally free credit report and a personalized action plan today. Credit Card Fraud: 21 Tips to Protect Yourself..
