subject: End The Debt Stress In 2010 – Legitimate Debt Relief Options [print this page] End The Debt Stress In 2010 Legitimate Debt Relief Options
If you are faced with a mountingdebt problem, you have banks and credit card companies calling you every other week to remind you about the payments that are past due. If you have gone thru the process of balance transfers, post dating personal checks, and just scraping by each month then you may be at the end of your rope. Regardless you cannot just sit by and allow your debt load to continue to get bigger with interest rates climbing higher each day. Now is the time to come up with an action plan using proven, effective ways to allow you to pay down your debt as fast and as easy as possible.
There are 3 things that you must do to pay off your debt load.
Pay Your Bills On Time And Pay More Than The Minimum Amount Due
If you pay only the minimum amount due each month you are actually increasing the overall amount you will pay, this makes your creditors very happy. This will extend the amount of time needed to pay off your bills and let your banks and credit card companies charge more interest, and also take more of your money. Along with that, if you make your payments before they are due you will also not have to pay any additional late fess or get an increase in your interest rate.
Pay More On The Accounts With The Highest Interest Rates
This is called the Snowballing Protocol; this method is used to prioritize your payments by making larger payments on the accounts with the higher interest rates. You then make payments to the accounts with the lower interest rates that are just a little more than the minimum amount due. An example of this would be if you have $750 set aside to pay down youpersonal debt, instead of paying $250 on each of your three credit cardaccounts you would pay $500 on the account with the highest interest and $125 to the lower interest accounts. This method will help to pay down the debt that carries the highest interest rates, and will allow you to pay off your debt much quicker. This lets you get rid of the debt that charges the most money and still pays down some of the debt on the lower interest accounts.
