| The Secret Debt Buster Plan |
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| Written by Aaron Shanty |
| Friday, 21 August 2009 10:05 |
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If you are currently wading knee deep in debt, then help is at hand. The 6 step Debt Buster plan is sane and easy advice to sort of your payments, get you back on track to staying in the black. The longer you are in debt, the worse it gets, so let's get started right away.
If you are currently wading knee deep in debt, then help is at hand. The 6 step Debt Buster plan is sane and easy advice to sort of your payments, get you back on track to staying in the black. The longer you are in debt, the worse it gets, so let's get started right away. 1. The first step is to note down all of your incomings and outgoings. The outgoings will be classed into mandatory (mortgage,bills etc) and discretionary (food,clothing,luxury items). We will use these amounts to determine how much you can afford to pay out towards getting rid of your debt. Without this step, you may as well not bother. 2. Take it from me now, you will need to make sacrifices to get this to work. There will always be something on your discretionary list that can be halved, saved on or cancelled all together. The less you pay out, the more you can pay towards clearing your debt. Sit down and think about each item properly. Can it be cancelled? A cheaper option found? Or does it need to be kept? If you can't decide or you are not good at being objective, get someone to help you and be "the voice of reason". 3. Examine your debts and order them by the interest rate, the highest first. One way of starting to tackle these debts is to start to pay off the one with the highest rate of interest first. You will be able to see quite easily which one is causing you the most problems if you look at them in this way. Make a point to tackle this one first - and JUST this one and you will begin to make head way. 4. If you have lots of loans or debts, clearing the decks of the smaller loans will also make sense. This will give you a great feeling of satisfaction and achievement and will leave you free to concentrate on the larger debts you have. If you can't see the woods for the trees, so to speak, this is a great way to focus your efforts which in the end will pay benefits. 5. Once you clear down one debt, take the payment you were making to that one and use it to pay off the next debt. If the debt you have just finished was the largest, then the next payment will be smaller. Keep paying the same amount if you can and the next debt will fall quicker. By consolidating your debt payments this way each time, you will be able to make a greater impact on the overall debt portfolio. Combine each time to save years off of the payments. 6. Remember that staying on this program requires self discipline. You will need to make sure that you keep an eye on all of your spending and try to keep a lid on any little extras that you may fancy buying. Stay strong and keep in mind what your end goal is. Remaining conscious of what you are doing at all times is key to success. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Get more tips and resources at the authors webpage, all about the Debt Buster guide. |