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Getting out of debt

Keroy King
November 07, 2014
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Getting out of debt

get out of debt, credit card debt

Keroy King

November 07, 2014
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Transcript

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  2. www.lifethenfinance.com While your mountain of debt may be daunting, it's

    possible to get to the top and clear your financial name!
  3. www.lifethenfinance.com Step 1: Organize Your Debts Smallest to Largest • 

    Pay only minimum payments and any left over money is directed to the smallest debt until it is paid off.
  4. www.lifethenfinance.com Step 2: Eliminate Small Balances First •  If you

    have a card with a low balance, pay it off first. •  Then reroute the money for that card`s payment to pay off cards with higher balances or a higher interest rate.
  5. www.lifethenfinance.com Step 4: Stay Focused Keep your eye on the

    your goal. And repeat the process until all the debts are paid-off.
  6. www.lifethenfinance.com Step 5: Avoid Skipping Payments Skipping payments will lead

    to many extra fees and harassment by debt collectors!
  7. www.lifethenfinance.com Step 6: Be Careful when Considering Debt Consolidation Companies

    There are plenty of scams in the debt consolidation industry. You are better off doing all the negotiations yourself.
  8. www.lifethenfinance.com Debt Consolidation •  Getting 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.
  9. www.lifethenfinance.com Step 7: Use Windfalls to Lower Your Debt Any

    extra cash you plow into your debt will be multiplied when you think of all the money in interest charges it will save you.
  10. www.lifethenfinance.com IRS Debt The Internal Revenue Service can: •  Take

    your house •  Empty your bank account •  Have you arrested on criminal charges •  Confiscate your business assets regardless of the fact that it puts you out of business •  And much more!
  11. www.lifethenfinance.com Student Loans •  Include the student loans as part

    of your debt snow-ball •  Consolidate them to avoid multiple payments.
  12. www.lifethenfinance.com Car Loans and Other Short Term Loans •  Usually

    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.
  13. www.lifethenfinance.com Mortgage Loans • Assuming this is your remaining debt. Focus

    all your extra money toward the mortgage and pay-off your home early.
  14. www.lifethenfinance.com Bi-Weekly Mortgage Plans •  With a bi-weekly plan, you

    pay approximately ½ 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.
  15. www.lifethenfinance.com Self-Reflection Questions: •  Can I pay off some of

    these loans early without penalty? •  How can I cut my expenses to speed up debt repayment?
  16. www.lifethenfinance.com Action 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.
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