Debt Reduction

Oh You Didn’t Know

Should you… Surf your credit card balances from higher rate cards to lower rate cards. YES! BUT, only if you intend to pay-off those surfed balances, and only if you plan to NEVER EVER use those higher rate cards again. DO NOT surf a balance to “card B” and then continue to use “card A”. Why? B/c you will end up with balances on BOTH cards. Pay-off higher-rate cards or lower-balance cards? THIS is a tricky one. IF you are current with all of your debts, and you can make all of your minimum payments without being late, AND you do not mind having multiple credit accounts open, then by all means, pay off the higher-rate card. (This is the…

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Debt Reduction

No Debt For You…!

I thought that I would list the most �prominent� methods for getting out of debt. Each method assumes that you are paying �consumer� debt: credit cards, automobiles, home equity loans, personal loans, etc. The home mortgage is placed into a separate �debt� category, and is not paid-off until after all other debts have been paid. (If you wish, you can treat your mortgage just like any other debt, and use any of the following methods to pay it off early) 1. Debt Consolidation: The basic idea is to take all of your debt accounts, and move the balance of these accounts into one account, typically a 2nd Mortgage on your home. Also, there are those who use a single credit…

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Debt Reduction

Simple Debt Reduction Strategies

Here are my simple debt reduction strategies: Gather ALL of your debt information. (This can include your mortgage, or not, depending on if you want to pay it off early or not.) List TOTAL AMOUNTS OWED for each account. List FINANCE RATE next to each account. Example Account Balance Rate Auto Loan 15000 6.00% Visa 6000 12.00% Master Card 5000 4.00% Personal Loan 2000 2.00% Okay, now you have an “over-all” picture of your debt. NOW, place the minimum you MUST pay for each loan, next to that loan amount: Example Account Balance Rate Minimum Auto Loan 15000 6.00% 350 Visa 6000 12.00% 75 Master Card 5000 4.00% 50 Personal Loan 2000 2.00% 25 Soo, now you know the TOTAL…

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