Debt Reduction

Round Up To Reduce Debt

When making our monthly mortgage payment, I always round up. I use a zero-based budget to manage our household finances. When calculating the allocation for the mortgage payment category – I round up to the nearest 100’s place. I do this, because I like easy-to-do math.  This works in our situation, because our payment ends with 60.12.  So, rounding up adds approximately $40 to our monthly payment.  If our payment ended with, say, 98.16, I’d round past the nearest 100’s place, and add an amount that felt comfortable within our budget.  And, if our payment ended with, say, 11.92, I might round up to the nearest fifty, and not go all the way to the next 100.  Clear as mud? …

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Debt Reduction

Focus On The Loan Principal

A few basic terms – loan principal, interest, and interest rate. The loan principal is the amount of money a borrower receives from a lender. Interest is the fee that the borrower pays to the lender, for the right to borrow the loan principal. The interest rate is the rate at which interest is paid to the lender. The interest rate is usually expressed as a percentage of loan principal for a period of one year. Alright – enough with the italics. Interest rates are extremely important, but please take note – the amount of interest actually charged by a lender is based on a percentage of the outstanding loan principal. In other words – if we reduce outstanding loan…

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Debt Reduction, Motivation

10 Debt Reduction Quick Tips

Are you working hard to get out of consumer debt? Awesome! Check out these 10 Quick Tips – ways to decrease spending, increase savings, and speed up your debt reduction – Early and Often After making regular monthly payments on all accounts, make extra principal-only payments as soon – and as often – as you can. This will help to decrease your average daily balance – and lower monthly interest charges! Sell, Sell, Sell Use eBay, Craigslist, Facebook, or have a yard sale, and sell something – or lots of somethings – this week. Use that money pay down debt. I find that kids’ clothing is a great seller on eBay. Sort and Roll Sort through your spare change. Look…

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