Skip to main content

Four Steps to Reducing Your Debt

What are the things that you want to achieve with your money? Identify at least two objectives with regard to this and you will be able to find ways to reduce your debts and improve your financial conditions. If you need strategic ways to be debt-free this year, read the following insights.

Highlight the reason behind your debt - Why are you borrowing money?  If you're borrowing money to pa'y bills or purchase your basic needs, you will have a hard time getting out of the cycle borrowing money and paying it back.  Borrowed money can fill in the gap temporarily but it can worsen your debt.

List down all your debts - Take note of all the money you owe other people or lending companies. Total all your debts. Create a spreadsheet so you can clearly see the monthly payments required, the loan interest rates, and the time remaining for payback. In another spreadsheet, create a debt reduction plan that will suit your financial capabilities.

Push yourself to your limits just to pay your debts - Nobody else will pay them and clear your name but yourself. Do something drastic that can earn extra dollars for you in order to payback your debts in time. Make sure not to take another loan just to cover your previous loans. Engage in extreme sacrifices like selling some of your priced possessions - car, computer, mobile gadgets, appliances or pieces of jewelry - so that you can come up with extra money.

Quit depending on debt - Change your attitude towards borrowing money. Never think of borrowing money whenever a certain need arises. Learn how to attend to or supply for that need within your means. Evaluate which methods will work best with your limited budget.



Popular posts from this blog

Drawdown Dangers – What It Means To Traders

Drawdown is a word that is feared and hated by every trader, but it is an inevitable part of playing the markets. It is simply how much your account loses from its peak. Suppose you start with $10,000 in your account, and after a succession of losses the account goes down to $7000. That means you have lost $3000, or 30% of the original starting $10,000, and therefore your drawdown is 30%. Drawdown is relative to where your account peaks, so say you had a good run and built the account up to $12,000, then lost $3000 again, bringing it down to $9000. Your drawdown this time would be $3000 from $12,000, or 25%. Maximum drawdown corresponds to the lowest your account ever hits. Sometimes you will see trading strategies detailing how much maximum drawdown is expected to be when using them – usually the more risky strategies will anticipate a greater drawdown while expecting a higher profit on average. Drawdown is particularly dangerous because, the way statistics work, you ...

How to Secure the Future of Your Child with Special Needs

If  you have a child who is differently abled, you will agree that leaving your child with no financial support in the future is very daunting.  Believe it or not, you can prevent this from happening by securing a special needs fund for your child as early as now. Because a child with special needs may be disqualified for public benefits, the aim of this type of trust fund is to give a convenient lifestyle to them without limiting their access to all available benefits. Generally, the creation of this fund is structured to supplement any assistance the government may provide concerned children in terms of clothing, food and shelter. The four important components of this trust fund are the asset, the beneficiary, the trustee and the purpose. The asset is the special needs resources that will be placed in a trust. The beneficiary is the concerned child while the trustee is someone who will be in charge of the disbursement of the funds. Meanwhile, the purpose serves as th...

Helpful Insights On Getting Out Of Debt Today

Getting out of debt is a dilemma confronting most singles and couples today. According to a number of surveys, the varied technological advancements make it easy for people to incur debts. The latest gadgets emerging left and right encourage consumers to spend even though they do not have money at hand. Also, the internet prods consumers to purchase on impulse with just one click on the shop online button. While there is a grain of truth in both ideas, having financial liabilities is oftentimes a matter of personal choice. There are, of course, exemptions to this. A clear example of such exemptions is debt incurred due to sudden mishaps. Getting out of debt is doable. However, erasing all your debts may take longer than the time you spent gaining them. A firm decision to be debt-free is the best way to start. With that, you must also decide to stop acquiring expenses that can lead to additional liabilities. Do you have a credit card? At this point, you probably know what to do wit...