If you are attempting to pay off your debts by sending slightly more than the minimum payments to your creditors, you probably noticed that your balances are not dropping as fast as you wanted. If you have such feeling that your debt balances are not reducing according to your expectation and your current finance situation allowing you to pay slightly more than the minimum amount. Did you know that HOW you pay your debts can affect how soon you will finish paying them off - even if you keep paying the same amount for debt every month? It's called Debt Staking method. When it comes to bankruptcy filling, it should be your last option. Although bankruptcy filling can gives you a fast debt relief, its consequences follow you for years.
It's not always the easiest to figure out the mathematics, but there are three steps to quicker debt relief.
STEP ONE - Create a list.
List your smallest debts first followed by your largest high-interest debts (credit card) and then your largest low-interest debts (Lines of credit and taxes).
Plan to pay the minimums on all debts with these goals in mind:
STEP TWO - Small bills first.
They may not be the highest interest, but every bill that you are paying some interest on means you are usually only paying minimal amounts on the principal. Multiple debts are also a sure way to bring your spirits down. Paying off small debts first is a quick way to start checking them off - and freeing your mind.
STEP THREE - Move the payments along.
When one debt is paid add the funds to the next debt. For example, say you're making $75 payments to a small debt. When the debt is cleared add the $75 to the next debt on your list. If the next debt had a minimum payment of $100, you will now pay $175 until it is paid off. When that one is finished, take the $175 and add it to the next payment and so on.
STEP FOUR - Save the cash!
Don't forget that when your debts are cleared you have set yourself up for a better financial future. The best way to take advantage of your new situation is to use all the money you were spending on debts and start investing or saving it every month.
With this strategy your debts will clear faster meaning you will pay less interest, you will see progress as you clear small debts first, and you will not be tempted to use the funds for personal use instead of debt repayment.
By focusing all your extra money to one debt at a time and targeting on the highest interest rate, you are erasing your most expensive liability faster. As each debt gets paid, you apply the money that uses to pay the first debt to the 2nd highest interest debt which has the lower interest rate as compare to the first one. Hence, the 2nd debt will be wiped out faster than the first one. And you continue to repeat the same process for the next and following debt, you will notice that each successive debt is wiped out faster than the one before. You will be happily surprised at how expedient this process is!
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By: rad | 25-07-2008
can glyconutrients help dystonia ?
Forebearance Agreement Error/Filing Bankruptcy?
By: Kathleen | 25-07-2008
About four years ago we fell behind in our mortgage payments. As our financial situation stabilized we made an agreement with our mortgage company to make payments every two weeks for three months to catch up, and then they would put the remaining payments at the end of the mortgage. Last spring (2007) we went to refinance our mortgage through another company and our mortgage company reported that we were 19 payments behind and owed over $95,000, yet our monthly statements showed us owing around $76,000. After I contacted them, they said we neglected to sign the forebearance agreement we were approved for. I asked what this was, having no idea, and when their records showed we were notified of any of this. They stated we were not notifed. A month later we received foreclosure papers and have since hired an attorney. Our debt to this mortgage company is now over $100,000 because they are charging us $145 per day in interest, besides many additional other fees. My questions are as follows: Are we better off going through a credit counseling service to negotiate with the mortgage company. They have refused to speak to us about any type of negotiating and have been consistently rude and ignorant, blatantly telling us to "get out" and give them the house. Should we just file bankruptcy? And should we be making our regular payments to the mortgage company as if none of this never happened? We have not made a payment in over a year on the advice our attorney.
Any help you can offer would be appreciated. Thank you in advance.
I have an item that was in collections and was ...
By: arco24 | 25-07-2008
I have an item that was in collections and was paid by my insurance a year after they started collecting. Now, I have that item on my credit report and it isn't being removed.The item is listed as being paid if full after being in collections. I have contacted the creditor and asked for proof that it was my burden to pay, and they said they won't do that. What can I do to remove this from my report?
2nd mortgage refinance
By: Musicman | 25-07-2008
I am currently up to date on my depts but just barely getting by (pay check to pay check) I have a 2nd maotrgage that I would like to convert to a fixed mortgage. The only problem is that Im paying $275 a month int only. when I switch over to a fixed rate My payments could increase up to $200 more monthly that could very well set up the stage for pushing us over the edge
Debt consolidation companies, debt consolidation company, credit card debt, credit relief, debt relief, credit cards
By: Johansen8 | 25-07-2008
Can Credit Card Debt Relief Be Attained?
so far, Im not convinced....
as stated by Ms. Mathis in can credit card debt relief be attained?
My son is disabled. we live in Wisconsin, are ...
By: Maria | 24-07-2008
My son is disabled. we live in Wisconsin, are there any programs out there so that maybe he could purchase a home? What if he bought a home with my daughter?
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