Taking Steps To Be Debt Free By Sharon Iremonger At Isnare.com Ezine Articles

Make this year the year you become financial and debt free. Impossible!!! Not if you follow these few simple steps. How easy can it be - well I have done it and you can too no matter what your situation. First of all face the fact you have a problem! Next look at how to change it once and for all. It's all so easy to get into debt anyone can do that - take a step further and get out of debt. All you have to do is to want to badly enough and you will do it. Let's try the first step -

1. Draw up a Budget. The best way to keeping your finances under control is to find out where and when you are spending the money. This will show you where you can trim that spending and free up some cash towards your debts.

2. Sort out your financial position. Debts are overwhelming - To get a clear picture, make a list of your assets, (all you own) and put them against your liabilities (everything you owe) It will soon be obvious where you can cut back.

3. Prioritize your debts. List all you owe by interest rates rather than by the amounts. High-interest loans go to the top of the list. Pay the debts at the top of the list off first. Pay the expensive loans first and keep up the required payments on the rest.

4. Pay more than the minimum. The minimum just covers the interest so it makes no impact on the principal - try to pay something over the minimum each time.

5. Use your savings if necessary. It's not commonsense to have money in the bank when you have huge debts - nice though it is - put as much as you safely can on to the debt repayments.

6. Talk to the lenders. They are in business to receive payments and faced with the prospect of losing a debt altogether most will accept a comprise. Tell the creditors you are having a problem with repayments and you will find they will be open to either extending the time or revising your repayments. What ever you do don't stop the payments this will put them offside.

7. Consolidate your debts. This involves combining high-interest debts into one lower-interest loan - in most cases this means putting them into your mortgage. Consolidating high interest personal loans and credit cards can be a sensible strategy as it will reduce your interest payments considerably. Remembering this will extend the term of the debt and you will pay more interest long term.

8. Cut up the cards. Now this is a hard one! If you must have a card limit it to just one or better still make it a debit card which draws cash from your own back account.

9. Protect your income. This one seems strange particularly when you have debts and that doesn't leave a lot left over for insurance - however this is a must in this situation.

10.Seek professional help. Pressure on family finances and families itself take their toll so getting professional help from a financial counselor can but help.

I followed all the above steps and now have after 2 years have almost got to the end of the long hard road back to being free of debt. Do you know how good that feels? Where did I go for help? Check out my favorite ebook superstore cbdeluxe - found a wealth of advice and information that was of great assistance to me. I did it - so can you.

You can find more on my blog at http://gr8riches.com/gr8blog

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