getting out of debt
Post on 02-Jan-2016
Embed Size (px)
DESCRIPTIONgetting out of debt, credit card debt, loans, - PowerPoint PPT Presentation
www.lifethenfinance.comGetting Out of Debt
www.lifethenfinance.comWhile your mountain of debtmay be daunting, it's possible to get to the top and clear your financial name!
www.lifethenfinance.comGetting Out of DebtCredit CardsBank LoansMortgage
www.lifethenfinance.comStep 1: Organize Your Debts Smallest to LargestPay only minimum payments and any left over money is directed to the smallest debt until it is paid off.
www.lifethenfinance.comStep 2: Eliminate Small Balances FirstIf you have a card with a low balance, pay it off first.Then reroute the money for that cards payment to pay off cards with higher balances or a higher interest rate.
www.lifethenfinance.comStep 3: Take Advantage of...TheSnowballEffect
www.lifethenfinance.comStep 4: Stay FocusedKeep your eye on the your goal. And repeat the process until all the debts are paid-off.
www.lifethenfinance.comStep 5: Avoid Skipping PaymentsSkipping payments will lead to many extra fees and harassment by debt collectors!
www.lifethenfinance.comStep 6: Be Careful when Considering Debt Consolidation CompaniesThere are plenty of scams in the debt consolidation industry. You are better off doing all the negotiations yourself.
www.lifethenfinance.comDebt ConsolidationGetting a loan from the bank to pay off your credit cards can lower your interest rate.Read the fine print on credit card offers that entice you to transfer your higher interest balances to them.Debt consolidation is one more way you can get out of debt without using any more money than you started with.
www.lifethenfinance.comStep 7: Use Windfalls to Lower Your DebtAny extra cash you plow into your debt will be multiplied when you think of all the money in interest charges it will save you.
www.lifethenfinance.comIf you owe money to the IRS, make those payments your highest priority!
www.lifethenfinance.comIRS DebtThe Internal Revenue Service can:Take your houseEmpty your bank accountHave you arrested on criminal chargesConfiscate your business assets regardless of the fact that it puts you out of businessAnd much more!
www.lifethenfinance.comStudent LoansInclude the student loans as part of your debt snow-ballConsolidate them to avoid multiple payments.
www.lifethenfinance.comCar Loans & Short Term Loans
www.lifethenfinance.comCar Loans and Other Short Term LoansUsually carry lower interest rates than your credit cards.
To avoid having eternal car loans, make a plan to put some funds aside so you can pay cash for your next car.
To lighten the load of another car loan, consider a used car.
www.lifethenfinance.comMortgage LoansAssuming this is your remaining debt. Focus all your extra money toward the mortgage and pay-off your home early.
www.lifethenfinance.comBi-Weekly Mortgage PlansWith a bi-weekly plan, you pay approximately of your regular monthly payment every 2 weeks.You can pay off your mortgage 8 15 years sooner, saving you many thousands of dollars in interest!You don't need approval from your mortage company, just send in an extra payment every month which will be applied to your principle.
www.lifethenfinance.comSelf-Reflection Questions:Can I pay off some of these loans early without penalty?How can I cut my expenses to speed up debt repayment?
www.lifethenfinance.comAction Tips:Make a written plan for paying off your debts and then follow your plan.Consolidate as much of your debt as possible.Pay off the smallest debt first.When a balance is paid off, reroute that money towards another balance.