MyDebtFreeSolution

STEP 1: STOP MAKING ANYMORE DEBT!!!

You cannot even begin to think of becoming Debt Free unless you stop making any further debt. The first step to get out of your Debt Trouble is to stop making any further Debt. Don’t be tempted to use your credit cards or enter into more loan agreements just to try and pay current debt. That is Debt Suicide.

STEP 2: MAKE A LIST OF WHAT YOU OWE CREDITORS 

Gather all your latest statements and begin to make a list of all your Debt Obligations.  Begin with the largest balance first. List the minimum monthly installments required, interest rate applicable as well as the outstanding balance. You might get the shock of your life when you see how many Credit agreements you really have, and the total Debt amount they all add up to.

STEP 3: REDUCE YOUR EXPENSES

Look at your budget responsibly and see which expenses can be reduced.  For example:

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- Reduce your DSTV package to a lesser one. 

- Consider reducing your cell phone contract to a more affordable package.  You most       probably will be paying a penalty fee because of the reduced package you want to downscale too, but at the end you will save some money.

  If you are using your cellphone a lot during office hours, it might be a better option for you to upgrade your cellphone. For example. You spent about 200 minutes on the phone every month on a 120 weekender package. The additional 80 minute calls made plus the calls  during peak hours can send your cellphone bill sky-rocketing. Upgading to a Talk 240 where you get 240 anytime minutes free, might be the best solution for you.

- Shop around for cheaper household and car insurance quotes with the same covering   you currently have.

STEP 4: PRIORITIZE YOUR REPAYMENTS

Add the additional money created extra in step 3 to the Debt with the smallest balance. Once the smallest Debt is paid off, use the money freed up in step 3 to pay off the next Debt on your list until this one is also paid off.  

This way you will not spend the money available after a debt has been paid off, but use it to pay off other debt. You will be amazed how much interest you will save.

STEP 5: GET HELP                     

If any Creditors are in the process of taking legal action against you, or you are experiencing trouble in meeting all your monthly debt requirements, don’t stress.

For a free debt assessment contact 0861DEBTAID.  A NCR Registered debt counsellor from Debt Aid debt Counselling can help you reduce your monthly debt repayments to one affordable amount, without making more debt.

None of us are perfect when it comes down to bad habits, but some are worse than others; not understanding your debt or finances is one of them. Kicking these bad habits into touch means that you can look towards becoming debt free:

1: Too many credit cards – Did you know that there are more credit cards than people in the UK? According to APACs, at the end of 2007 there were 73m credit and charge cards compared with around 60 million people.

Having too many credit cards means that you have the potential to get into too much debt. Although introductory offers many tempt you in, it is important that you take control of your credit card debt. Start by paying off the highest APR cards means that you can look forward to becoming debt free in a much quicker time.

2: Spending more than you earn – Spending more than you earn by living beyond your means is a financial habit which you need to nip in the bud right now. This is the quickest way to get into debt, especially if you regularly have to relay on your credit card the week before pay day.

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3: Missing credit card payments – Always make sure that you meet your credit card, store card or catalogue payments as they fall due. Missing these payments not only means that you will have to pay late fees but any missed payments will also show on your credit file, which could make it more difficult to get accepted for credit in the future.

4: Losing touch of your finances – Being unaware of how much cash you have in the bank to how much debt you have outstanding means that you have lost touch with your finances, which will make it harder to become debt free. Checking your credit report is a good way to see your own credit history.

5: Not seeking debt help when you need it – Sadly debt problems will not sort themselves out, and if you are missing credit card, store card or even mortgage payments then you need to seek help as soon as possible.

Debt Free may be able to offer you one of our debt solutions which could help you to control your debts by reducing the amount that you need to pay to your unsecured creditors. Getting help about your debts mean that, if you qualify, you could look forward to becoming debt free in 60 months with an IVA.

There is no complete debt elimination without repayment. Whenever there isn’t any debts to pay, you are financially independent. Never place your hope into some wonder program which can wipe away your financial troubles. It’s unrealistic to wish for such things. The correct method is to decrease the unnecessary payments, control the spending budget sensibly and start saving money. Never put your dreams in the money from retirement plans or from life insurance policies since this is very tricky!

Debt reduction should be maximized throughout your productive work years, since you should not be in financial debt when you attain retirement age. The issue is that the pension plan may well not provide you with ample money to pay for your expenditures and you’ll wind up broke when you most need it. Create a spending budget worksheet and see which of your expenditures are validated by requirements and which are not.

After that you’ll understand that total debt elimination approaches call for serious commitment and significant amounts of participation. You won’t have the ability to enjoy a debt free life if you have a gambling problem or if you have a shopping addiction.

The entire family earnings gives the foundation for the total debt elimination plan. However, lots of unknown things can take place in the context of the modern world financial crisis. What if you had to deal with unemployment? Exactly how does one take care of personal debt then? You need to pay great attention to this problem.

Just in case you choose to pay just the bare minimum amount for the unsecured credit card debt, it will take a lengthy time to make the repayment. Credit companies have all of the interest to keep you attached to them because you and tens of millions like you are the cash cows.

For total debt elimination you need to use charge cards cautiously, and give up the concept of purchasing now and paying later on. Then, your inquiry on charges and interest rate should persuade you whether to accept a charge card or not. The borrowing practices should assist you to choose the credit card. In reality, borrowing from the bank isn’t a healthy habit at all. You need to have good management skills, plenty of determination and a lot of strength so that you can handle complete debt elimination. Additionally, the consumerist trend is all the stronger and you must resist it as well as you can. There’s tough work waiting ahead but with the right motivation it is possible!

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