Guide

Debt Reduction Guide: Preparing For Freedom

No Credit Needed Debt Reduction Guide Section Three: Preparing For Freedom Build A Substantial Emergency Fund After getting out of debt, you next goal will be to stay out of debt. To that end, consider creating and funding a substantial emergency fund. The exact amount that you will want to keep in your emergency fund will vary, according to the number of people in your family, but a good rule of thumb is to try to maintain an account with enough money to cover three to six months of expenses. Open an account – online or at your local bank – for you emergency fund. Personally, I prefer an online savings account, but you could choose a money market account…

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Guide

Debt Reduction Guide: Moving Beyond The Basics

No Credit Needed Debt Reduction Guide Section Two: Moving Beyond The Basics Reduce Monthly Interest Charges: Send minimum payments and extra payments as early in the payment cycle as you possibly can. This reduces your average daily balance which reduces the amount of interest charged. Transfer Balances Carefully: Consider transferring debt from one creditor to another, but be smart. If you move credit card debt from one card to another, understand the terms of the balance transfer. Many cards charge a balance transfer fee. Do the math. Calculate the amount of interest you will pay if you keep debt on your current card, the amount of interest you will pay, plus the balance transfer fee, if you move debt to…

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Guide

Debt Reduction Guide: Getting Started

No Credit Needed Debt Reduction Guide Section One: Getting Started Tools: pen / paper / calculator / most recent bank statements / loan documents / credit card statements Calculate Total Starting Balance: List all of your debts – Create columns to list creditors, balances, due dates, minimum payments, and interest rates. Add up all balances – This amount is your total starting balance. Determine Debt Reduction Method: Now that you have your total starting balance, you no longer have ‘debts’, you have your ‘debt’. In other words, your new goal is to get rid of your entire starting balance, not just a part of it. With that in mind, there are two debt reduction methods that work really well –…

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