subject: Debt Relief Tips – How To Get Out Of Debt By Yourself [print this page] Do you need some debt relief? You are not alone. Here are 5 tips on reducing debt that you can do right now.
1 . Stop Using Credit Cards
Put the credit cards under lock and key. That's the place to start. If you want to get out of debt, you have to learn to operate on only the income you make. Figure out how to bring in more income and instead,use only cash. This is the single most effective action you can take.
2. Don't Obligate your Company to Pay More than it is Making in Income
Using credit to purchase something commits your company's future income to the credit card company. That's the recipe for economic slavery. Ask yourself if you just want the item or if you really need it to increase the production of income. If you really need it to produce more income, figure out how to make the cash to pay for it over a short period of time, rather than buying on credit. Find ways to increase the company's income and use it to pay both current expenses and pay off credit debt.
3. Never Pay Just the Minimum Payment Amount Required
To be really effective, your program should include using 10% to 15% of the business' weekly income to pay against the debt. Set a target of paying 3 to 5 times the minimum monthly payment on every credit card. Set aside a bit of the payment money each week until the statements arrive in the mail. It's much easier to set aside a smaller amount over 4 weeks than scramble to come up with the whole amount out of one week's income.
Paying more on the highest interest rate card is an effective debt reduction tool you should use in your program. An additional tactic is to pay off the cards with low balances as quickly as you can. The money you were paying on those low balance cards becomes available to pay off the highest interest rate cards.
4 . Never Spend Over the Card Limit or Pay Late
Do not destroy your debt reduction strategy by getting hit with late payment or over-limit fees of $25 to $39 on which you'll pay interest. In addition, if your payment is more than 30 days late, your credit record carries that big black mark against you for 7 years - a whopper of a penalty.
Recently the Vice President of a U.S. bank announced on the news that over 24 Billion dollars was paid by consumers last year in fees for interest, late charges and over-limit charges. Don't think the credit card company really minds if you pay late or go over your limit. They make billions when that happens.
5 . Reduce your Expenses
Reducing debt requires as much cash as possible, as fast as possible. Evaluate how your company's income is being used and cut back on any expenses that do not contribute to the production of more income. Before you spend, work out how much money each and every purchase is going to return to your company.
Tip : Don't ever stop promoting your company and its products to everyone - never stop promotion activities. Just make sure you are getting a handsome financial return on the promotional investment.
Correctly managing the money in a business to ensure its survival guarantee it will survive takes more than a strategic money management plan to get out of debt, but this is a really good place to begin. There are other steps that can be taken to increase the company's income, pay bills on time, have cash reserves for emergencies, increase profitability and pay yourself a higher salary. Who doesn't want that, right?
Debt Relief Tips How To Get Out Of Debt By Yourself
