Simple Steps to Zero Debt
bills? Then follow these simple steps to having zero debt.
The first step in becoming debt-free is
knowing exactly how much credit card debt you owe. Don’t
“guesstimate” about your bills. Get honest about your situation and list all
your bills in black and white. Use whatever method works for you. But do get
everything on paper, by either writing it down or using a spreadsheet
Web site resource: www.AnnualCreditReport.com
Equifax for a complete listing of all your credit accounts, including
mortgages, student loans, car notes and credit cards.
Have you tried calling your credit card companies and requesting a lower
interest rate? You might be surprised at how readily you can get a “yes.” A
study from Synergistics found that 75 percent of all consumers who asked for a
lower rate got it. If you’ve been paying on time, and a creditor won’t budge on
a sky-high interest rate, consider switching cards.
CardRatings.com lets you comparison shop online for the best available credit
card rates.
A windfall is any “extra” lump sum of money that comes your way. It could be a
year-end job bonus, an income tax refund check, a stimulus payment from the
government or even life insurance proceeds or money from a divorce settlement.
Don’t blow this money! Use it to knock out debt.
Instead of getting a big tax refund check each year, adjust your W-4
withholdings at work, so you get a bigger paycheck. The IRS Web site has
detailed instructions–see IRS Publications 505 and 919–on how to adjust your
withholdings.
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) Get free, quality financial helpDon’t allow shame and embarrassment to keep you from receiving professional
help. Being in debt doesn’t mean you’re a bad person, nor is it a knock against
your intelligence. Unfortunately, most of us simply didn’t learn about managing
credit and debt wisely at home, or even in school.
Web site resource: www.NFDM.org
The National Foundation for Debt Management is a
reputable non-profit agency that helps people struggling with debt. Their
HUD-certified credit counselors negotiate with creditors to lower your interest
rates and can create a plan for you to quickly eliminate debt.
The #1 rule of proper budgeting is to spend less
than you earn.It sounds simple enough. But 70 percent of all Americans don’t have a working
budget. And even most of those who do create a budget can’t stick to it–even
though a well-made budget can help you avoid going into debt
online budgeting Web site with tools to help you track your spending and stay
out of debt.
