How to go about Reducing Debt!!

What is the main problem these days with our current debt levels!!!

The real issue i see which faces most people is not so much mortgage debt but the personal debt which we have accumulated. We are constantly bombarded with advertising and the general perception that we should have everything we want, right now. Store cards, credit cards, interest free periods when buying a new TV, all tempt us to buy now and worry about the payments later.

Now we are people who like to have our toys, don’t we? Of course we do!

When we can get money as easily as we have been able to, why shouldn’t we have all the toys.

The only part of taking on all the debt which hasn’t been explained to those being offered it, is how to manage their money! Giving people the skills and tools to be able to ensure the payments are being made and they don’t end up paying more interest than the amount they borrowed.

I have been in that situation of having a lot of debt and not enough income to cover the payments. o what can you do?

Tip

1. List all your debts, how much you owe, what interest rate you pay and what is the minimum payment required for each debt.
2. Prioritise the debts in order of Interest rate and loan size.
3. Work out if you can pay any extra each month

The process of paying down debt is simple, although it takes some discipline.

Take the highest priority debt and pay the minimum plus the extra and pay that, then pay the minimum on all the others.

Tip………you can also go to your lenders and see if you can get your minimum payment reduced for a period of time. That will allow you to put the extra money into the highest priority debt payments.

I have a little excel tool i can send you to help you prioritize your debt payments. Just send me an email and i can send it to you.

Hope this helps. Russ

Tags: credit card debt, debt reduction, finance, financial management, loans, money management, smart money