TIPS TO BECCOMING DEBT FREE

With more and more ways to save in the store it’s time to discuss what to do with all those savings. If you are like most Americans you hold a fair amount of credit card debt an average of $15,799 if you’re a student up to $26,600.00 what do you do and where do you begin.

 First of all like always start with a plan. Gather your debt find out exactly what you owe and phone each holder describe your situation and tell them you want to be considered a hardship case. Not too long ago a family I know was notified of a debt they frankly had forgotten about and was told they owed $2,500 on a credit card over 10 years old so they in the end were allowed to make a first payment of $344.00 then two payments over the following two months of $100.00 each paying off their debt with only $544.00 and a total clearing their credit. Now if they can talk down this amount so can you. You never know until you try and what’s the harm in trying.

Now once you know your debt and you have a plan for payment you may want to start with the biggest debt first, but experts say start with the lowest so that you can save up for the big one.   Pay off one credit card or store account at a time.

How do you do it if you’re on a fixed income? One way is to assess your bills. If you keep track of your monthly expenses you will know where you’re money goes.

First gather all your bills utilities, satellite, car, and mortgage etc.  See if there’s a place you can cut back say that satellite bill do you really need all those premium channels during the summer when most of us are out of the house.

 Can you skip a car payment some car payments can be skipped without penalty if you speak with your holder?

 Is it time to refinance? Most mortgages can be refinanced with lower interest rates and can be done if you haven’t been late with your mortgage payments in the past 12 months.

Once you’ve scaled back you now know what you should have left over each month and where you can place it to pay off debt.

You also may consider the 52 week challenge deposit either $52.00 of just $1.00 to start and add $1.00 more each week or $1.00 less if you begin with $52.00 to your savings at the end of the year you will have save over $1,000 towards paying off your debt.

Try Ready for Zero  to keep track of your spending and savings  and enter to  win $2, 500 from Manilla that would go a long way to paying off any debt. Looking for new ways to earn cash visit the earn page at www.where2save.com

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