Debt Relief Using Your Current Income

Written by Carolyn Shipp


Continued from page 1

Once you have completed this, add uprepparttar total months to pay off your debts to figure an estimate of how long it will take you to pay off all of your debt.

Example:

Visa total balance $6300.00 divided by minimum monthly payment of $153.00 = 41 (months to payoff) 2 (second to payoff)

Auto Loan $13000.00 divided by minimum monthly payment of $356.00 = 36 (months to payoff) 1 (first to payoff)

Mastercard $5266.00 divided by $96.00 = 54 3 (third to payoff)

Mortgage $43,000.00 divided by $325.00 = 132 4 (fourth to payoff)

The auto loan isrepparttar 112043 first to payoff because it hasrepparttar 112044 shortest amount of time before it is paid in full. Then your Visa balance and so on.

Net Income = $1500.00 x 5% = $75.00

Taking your first debt to payoff which isrepparttar 112045 auto loan:

minimum payment $356.00 + $75.00 = $431.00 total balance $13000 divided by $431 = 30 (months it will take you to payoff this balance using additional 5%)

Visa: $153.00 + $75.00 + 356.00 (since this loan amount is paid in full) = $584.00 total balance of $6300.00 divided by $584.00 = 11 (months it will take to payoff credit card)

Mastercard: $96.00 + $75.00 + 153.00 + $356.00 = $680.00 total balance $5266.00 divided by $680.00 = 8

Mortgage: $325.00 + $75.00 + 96.00 + 153.00 + 356.00 = $1005.00 total balance $43,000.00 divided by $1005.00 = 43

Add your months together: 30 + 11 + 8 + 43 = 92 approximate months to have all of your debt (including you home) PAID IN FULL! This is about eight years! Can you imagine being debt free in eight years???? That means that your home would be free and clear and you would have 100% equity!

If you applyrepparttar 112046 above formula to your financial situation, you can be debt free without getting a second job or without working extra overtime! Imaginerepparttar 112047 time you can spend with your family and friends instead of working. Of course if you take a higher percentage of your net income, you will pay off your debt faster!

This is something that anyone can do based on simple math. The trick to remember is to NOT use your credit cards. In fact, cut all but one up! Get rid of them and just keep one in case of a major emergency. Start yourself a savings account to begin building up your emergency funds. Eventually set goals for yourself to save for college funds, retirement funds, etc.

Remember this fundamental rule:

PAY FOR CURRENT EXPENSES WITH CURRENT INCOME

Much Luck to You,

Carolyn Shipp http://bucksback2u.com/carolyn/rewards.html

Carolyn Shipp is a business owner and single mother of two. She has had her own successful business for about a year now and enjoys the freedom working from home gives her.


Using a Home Mortgage Calculator

Written by Brad Triggs


Continued from page 1

You can also takerepparttar analysis a step further, and userepparttar 112042 other available calculators online to determine if you will be able to affordrepparttar 112043 monthly amount that you hadrepparttar 112044 form calculate for you. You'll need a little more information to determine whether or not you can financially afford to purchaserepparttar 112045 home based onrepparttar 112046 monthly payment, such asrepparttar 112047 approximate amount ofrepparttar 112048 yearly taxes, andrepparttar 112049 total of your other monthly payments. The calculators that analyze whether or not you can affordrepparttar 112050 home will calculate how much your salary should be based onrepparttar 112051 information you've entered.



************************************** Brad Triggs provides more information and free mortgage quotes at his website: e-Loans-Now.com - Home Mortgage Calculators **************************************




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