Basics, Motivation

How To Stay On Track

Lets be honest:  This whole debt reduction / saving money / getting our finances together thing can be difficult / boring / exhausting.  Perhaps, there are some steps that we can take to stay (or get back on) track – even as we push through those difficult / boring / exhausting days. 1.  Start with a solid game plan and a defined goal. Your first goal will depend on your starting point.  You may need to get current with all of your creditors.  You may need to build a small emergency fund.  You may need to pay off you consumer debt.  Whatever you goal – put it on paper, date it, and determine your plan to achieve it. It never…

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Basics, Saving Money

How To Maximize Or Minimize Interest

If you are working to get out of debt, one of your goals will be to minimize the amount of interest that your creditors will charge you.  If you are working to save money, one of your goals will be to maximize the amount of interest that your savings will earn.  Here’s how to minimize the amount you will be charged and maximize the amount you will earn. Minimize Interest Charged – 1.  Do not wait until the due date to make payments. Most credit card companies use the average daily balance when calculating your interest charges.  What does this mean to you?  The sooner you make your payments, the lower your average daily balance will be.  The lower the…

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Basics, Credit, Debt Reduction

How To Eliminate Credit Card Debt

1.  Create a list of your credit cards. Include account balances, interest rates, due dates, and minimum monthly payments. 2.  Make minimum payments to all credit cards, on time. 3.  Make an additional payment to one of the cards on your list. If you make an extra payment to the account with the smallest balance, you can quickly eliminate an entire card balance from your plan.  This may provide a much-needed emotional boost and keep you motivated. If you make an extra payment to the account with the highest interest rate, you guarantee that you will be paying the least possible amount of interest.  This is a mathematically-sound approach. 4.  Continue to make minimum payments and the extra payment until…

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