{"id":1525,"date":"2009-12-17T14:29:58","date_gmt":"2009-12-17T08:59:58","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=1525"},"modified":"2009-12-17T14:29:58","modified_gmt":"2009-12-17T08:59:58","slug":"how-to-create-ultimate-debt-elimination-plan","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/how-to-create-ultimate-debt-elimination-plan\/","title":{"rendered":"How to Create Ultimate Debt Elimination Plan?"},"content":{"rendered":"
Create Your Own Ultimate Debt Elimination Plan<\/div>\n
The method is simple. 1) Set a monthly amount. 2) Pay all<\/div>\n
minimum amounts. 3) Pay extra money toward the debt with<\/div>\n
the highest interest rate.<\/div>\n
This method will ensure that you pay the least amount of<\/div>\n
interest and repay your debts as soon as possible.<\/div>\n
The trick to paying the least amount of interest possible is<\/div>\n
to pay extra money toward the debt with the highest interest<\/div>\n
rate. Obviously you want that debt paid off as soon as you<\/div>\n
can. Each month it costs you the most.<\/div>\n
The trick to paying off your debts in the least amount of<\/div>\n
time is to set a fixed total amount to pay each month. The<\/div>\n
trap many people fall into is that they only pay the minimum<\/div>\n
payments. These minimum payments are designed to keep you<\/div>\n
paying that high interest rate for as long as possible.<\/div>\n
By paying a fixed total amount each month, as one debt is<\/div>\n
paid off, you will have more money to pay towards another<\/div>\n
debt. This is often called the “snow-ball” effect.<\/div>\n
But first things first.<\/div>\n
First, determine you ability to pay. If your total payments<\/div>\n
are much more than you can afford, you are in trouble. You<\/div>\n
may need to contact a non-profit credit counseling agency.<\/div>\n
You can find them in your local phone book or online.<\/div>\n
But be careful of companies that want an up front fee.<\/div>\n
Check with your local Better Business Bureau for<\/div>\n
recommendations.<\/div>\n
Next you need to make a commitment to stop getting further<\/div>\n
into debt. Cut up your extra credit cards or put them where<\/div>\n
you cannot easily get them. If you are living a lifestyle<\/div>\n
that depends on credit, you will soon dig a hole you cannot<\/div>\n
easily climb out of.<\/div>\n
Stop spending more than you make each month and don’t count<\/div>\n
on future bonuses, inheritances, refunds or other<\/div>\n
non-dependable income to bail you out. If you make $2000 a<\/div>\n
month you can only spend $2000 a month. Look for ways to<\/div>\n
cut back and purchases you can postpone or do without.<\/div>\n
Now, let’s look at each step of your ultimate debt reduction<\/div>\n
plan more closely.<\/div>\n
First, determine how much you can afford to pay each month<\/div>\n
toward your debts. At the minimum it should be the total of<\/div>\n
all your minimum payments for the current month.<\/div>\n
You may need to examine your spending for the last several<\/div>\n
months. Find things you can eliminate or do without for a<\/div>\n
while. Postpone purchases, cancel subscriptions. Anything<\/div>\n
to free up more money to pay off your debts.<\/div>\n
You may even want to postpone investing for awhile. Are<\/div>\n
your investments beating that 18% you are paying on your<\/div>\n
credit card? If not, a better investment would be to repay<\/div>\n
your debts.<\/div>\n
Once you have your monthly debt repayment amount set, you<\/div>\n
need to write down each monthly debt you are paying. Record<\/div>\n
the creditor’s name, the current balance, and the interest<\/div>\n
rate. Then take a separate sheet of paper and reorder the<\/div>\n
debts so that the debt with the highest interest rate is at<\/div>\n
the top.<\/div>\n
Now as each monthly bill comes in pay the minimum payment.<\/div>\n
Subtract the minimum payment amount from your set monthly<\/div>\n
total. After all the bills are paid for the month, take any<\/div>\n
extra money left over and make another payment on the debt<\/div>\n
at the top of your list.<\/div>\n
You can make an additional payment this month or save the<\/div>\n
money to add to next month’s bill. But don’t spend it!<\/div>\n
As each debt is repaid, cross it off your list, but keep<\/div>\n
paying the total monthly amount you set at the beginning.<\/div>\n
This will accelerate your debt repayment and save you<\/div>\n
hundreds or even thousands in interest charges.<\/div>\n
The two keys to your ultimate debt elimination plan are to<\/div>\n
1) stop getting further into debt and 2) set your monthly<\/div>\n
debt repayment amount. The rest is easy. You will be debt<\/div>\n
free before you know it!<\/div>\n

It takes just 3 steps to create a plan . The method is simple to understand and implement :<\/p>\n

. 1) Set a monthly amount<\/p>\n

. 2) Pay all\u00a0minimum amounts<\/p>\n

. 3) Pay extra money toward the debt with\u00a0the highest interest rate.<\/p>\n

This method will ensure that you pay the least amount of\u00a0interest and repay your debts as soon as possible.The trick to paying the least amount of interest possible is\u00a0to pay extra money toward the debt with the highest interest\u00a0rate. Obviously you want that debt paid off as soon as you\u00a0can. Each month it costs you the most.<\/p>\n

The trick to paying off your debts in the least amount of\u00a0time is to set a fixed total amount to pay each month. The\u00a0trap many people fall into is that they only pay the minimum\u00a0payments. These minimum payments are designed to keep you\u00a0paying that high interest rate for as long as possible.\u00a0By paying a fixed total amount each month, as one debt is\u00a0paid off, you will have more money to pay towards another\u00a0debt. This is often called the “snow-ball” effect.<\/p>\n

But first things first.<\/p>\n

First, determine you ability to pay. If your total payments\u00a0are much more than you can afford, you are in trouble. You\u00a0may need to contact a non-profit credit counseling agency.\u00a0You can find them in your local phone book or online.\u00a0But be careful of companies that want an up front fee.\u00a0Check with your local Better Business Bureau for\u00a0recommendations.\u00a0Next you need to make a commitment to stop getting further\u00a0into debt. Cut up your extra credit cards or put them where\u00a0you cannot easily get them. If you are living a lifestyle\u00a0that depends on credit, you will soon dig a hole you cannot\u00a0easily climb out of.<\/p>\n

Stop spending more than you make each month and don’t count\u00a0on future bonuses, inheritances, refunds or other\u00a0non-dependable income to bail you out.<\/p>\n

Now, let’s look at each step of your ultimate debt reduction\u00a0plan more closely.<\/p>\n

First, determine how much you can afford to pay each month\u00a0toward your debts. At the minimum it should be the total of\u00a0all your minimum payments for the current month.\u00a0You may need to examine your spending for the last several\u00a0months. Find things you can eliminate or do without for a\u00a0while. Postpone purchases, cancel subscriptions. Anything\u00a0to free up more money to pay off your debts.<\/p>\n

You may even want to postpone investing for awhile. Are\u00a0your investments beating that 18% you are paying on your\u00a0credit card? If not, a better investment would be to repay\u00a0your debts.<\/p>\n

Once you have your monthly debt repayment amount set, you\u00a0need to write down each monthly debt you are paying. Record\u00a0the creditor’s name, the current balance, and the interest\u00a0rate. Then take a separate sheet of paper and reorder the\u00a0debts so that the debt with the highest interest rate is at\u00a0the top.<\/p>\n

Now as each monthly bill comes in pay the minimum payment.\u00a0Subtract the minimum payment amount from your set monthly\u00a0total. After all the bills are paid for the month, take any\u00a0extra money left over and make another payment on the debt\u00a0at the top of your list .\u00a0You can make an additional payment this month or save the\u00a0money to add to next month’s bill. But don’t spend it!<\/p>\n

The two keys to your ultimate debt elimination plan are to<\/p>\n

1) stop getting further into debt and<\/p>\n

\\2) set your monthly\u00a0debt repayment amount.<\/p>\n

The rest is easy. You will be debt\u00a0free before you know it!<\/p>\n","protected":false},"excerpt":{"rendered":"

Create Your Own Ultimate Debt Elimination Plan The method is simple. 1) Set a monthly amount. 2) Pay all minimum amounts. 3) Pay extra money toward the debt with the highest interest rate. This method will ensure that you pay the least amount of interest and repay your debts as soon as possible. The trick […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[2353,2453,3483,3802,4473,4467,2367,2966,2360,4466,857,2901,715,917,4468,4472,4471,4469,4470],"class_list":{"0":"post-1525","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-general","7":"tag-annuities","8":"tag-dividends","9":"tag-finance","10":"tag-financial-planning","11":"tag-index-funds","12":"tag-investing-in-mutual-fund","13":"tag-investment","14":"tag-money","15":"tag-mutual-fund","16":"tag-mutual-fund-investment","17":"tag-shares","18":"tag-stock","19":"tag-stock-exchange","20":"tag-stocks","21":"tag-tax","22":"tag-tax-planning","23":"tag-tax-problems","24":"tag-tax-redemption","25":"tag-tax-saving-schemes","26":"entry"},"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=1525"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1525\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=1525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=1525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=1525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}