Theme: Be Debt Free
October 30, 2009In today’s world, we are dominated by credit. It becomes more and more difficult to tote around money particularly now the cost of cash is becoming smaller and smaller. The things that we could buy with a dollar back then are not the same as the things we can buy today. Using credit is a good way to stretch out a budget.
Carrying aVisa card is way less complicated than carrying cash too. When you carry a mastercard credit card rather than cash you are less prone to getting robbed. If your purse does get robbed, you can always call the credit card company to cancel your visa cards before the guilty party uses them.
Credit also helps us secure things that we normally would not be ready to afford today. For instance, if the world was dominated by cash no person would be ready to purchase a house. Very few folk save enough money to pay for a house by cash in full and with the aid of the Mortgage Services from banks we can live in our perfect homes before we’ve got the money to pay for it.
A credit card and debt in general has made everything easy for the people in this planet to do everyday things, or does it? What ordinary person does not realize is that debt typically includes interest charges and compounding interest and that kind of thing.
Today, folks believe that the only way they can get out of debt is through death. Sometimes their Asset Protection on their Estate Planning only goes to repay debt that they believed they had already escaped.
So, how can we get out of debt? Is there a way? Yes, thereis a way we will be debt free. It needs to have a little discipline and a bit of creative thinking. Follow these straightforward steps and you may be debt free in almost no time.
The very first thing you may do to get out of debt is to find out quite how much debt you have. It is good practice to scribble down all of your credit cards in a bit of paper and write down the balances and IRs for each credit card. Except for the credit cards, write down all the other debt you have like mortgages, student loans, and all the other things that you pay interest to in a monthly, quarterly or yearly basis.
Identify which of the cards hold the most of your debt. Attempt to payoff the cards with the highest interest rates first. Get rid of the creditcards with the highest IRs first because majority of your payments just go into the interest rather than the principal.
It’s also vital to pay more than the minimum amount required because you will never payoff your debt that way. The minimum payment pays less than the interest levied from your principal thus your interest grows and it just continues to compound.
Articles by John Black. .