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Archive for December, 2009

Step five try to make all of your goal monthly repayments each month it’s ok if some months you pay more off one of your expensive then a different one the next just try to stick with paying as much off them each month that you can and make you sure you keep track of how much you have paid and how long you have got before they are all paid off and you will soon be debt free.

Step four now you are starting your payment plan you should contact your lenders and creditors and find out if you can improve your teams of your debt like lower the interest rates or maybe reduced settlement on your debts. You can also think about moving some of credit cards debts to a credit card with a lower interest rate just make sure you keep you balances below 35% of the credit limits to avoid damaging your credit score or you could look into getting a person loan to consolidating all of your debts.

Step three you have to make a plan for reducing them debts so make a goal for how much you are going to pay off each month and try to stick with it. Make yourself a chat so you know where you are up to with your repayments so you know how much you have paid and what is left to be paid. Also try and see if you can pay off more each month by working out how much you have got left over from your monthly income to do this you start by taking away your minimum debt payments and your monthly expenses from your monthly income after taxes then what is left over you can use to pay off the debts with the highest interest rates.

Step two is to make a monthly budget to do this you will have to get another piece of paper and put down all of your income and out goings e.g your wage and any tax credits ect are your income then you have to put down your out goings eg rent/mortgage utilities bills, food shop and any other expenses now you can see how much is left over. Now work out how much you can pay off for each debt but remember the more you pay off the quick you can say you are debt free.

Step one is to find out about your debts for this the first thing you should do is to get hold of and print out your credit report  then get all of your financial documents together e.g loans, credit cards and catalogues so now you can check where you stand with your debt this can be on the scary side. On a piece of paper write down each of your debts including the balances interest rates and the monthly re payments the ones with the higher APR try to pay these off first.