How to Reduce your Debt in 5 Easy Steps

Written by B Chapi


If you have incurred substantial personal debt, consider these options: budgeting, debt consolidation, credit counselling from a reputable organization and working with your creditors. You will need to choose a debt reduction method that will work best for you? The method you use will depend on your level of debt, how much spare money you have, your level of discipline, and how quickly you want to get out of debt.

1. REALISTIC BUDGETING

The first step towards taking control of your financial situation is to do a realistic assessment of your income and expenditure. Work out how much you earn (your total income) and write this figure down. Then total your expenses. This is how much you spend each month for rent, fuel, food, clothing, heating, water, electricity and other bills. The difference between your total income and your total expenses isrepparttar amount of money available to pay your creditors or lenders.

Decide if there are any monthly expenses that you can reduce or live without. Focus on lowering your expenses so that you can increase your income. You'll be amazed at how many things you can do without.

a) Debt Reduction Methods

Choose a debt reduction method that fits your situation and givesrepparttar 149716 maximum benefit. You could choose to focus on repaying debts that are most important to your credit rating or to maintaining your family's safety. Or you can start by paying off those debts withrepparttar 149717 highest interest rate thus reducingrepparttar 149718 total spent on interest charges and increasingrepparttar 149719 amount available to pay off debt.

Alternatively, you could focus on paying off bills withrepparttar 149720 lowest balances. Thenrepparttar 149721 money used for those payments can go to pay off other debts.

If your credit payments (excluding mortgages) exceed 15-20% of your take home pay, you can work with creditors to set up monthly instalments that are more in line with your income.

b) Credit Cards

Transfer your credit card debts (balance) to a card offering an introductory 0% interest rate for balance transfers. Make sure you keep uprepparttar 149722 repayments and then just before your 0% introductory offer is up, apply for another 0% card, transferrepparttar 149723 balance over before you starting paying interest Ė and repeat. With a good credit record, you could do this for years, moving your debt from one card to another until itís paid off.

3. DEBT CONSOLIDATION

This is when you use a new loan to pay off multiple debts. Your monthly payment will be lower because repayment is spread out over a longer period of time. This will usually eliminaterepparttar 149724 hassle of having multiple creditors, multiple bills, and multiple payments to make. It's very important not to take out any additional loans until your consolidation loan has been repaid. Borrowing against your home is a cheap way to raise money, but itís risky. If you canít makerepparttar 149725 payments - or if your payments are late - you could lose your home.

Payday Cash Advance Loans - The Benefits Of Using The Payment Protection Plan

Written by Carrie Reeder


Payment protection plans are offered by payday companies to protect you in any number of unexpected situations. The payment protection plan is an inexpensive form of insurance that payday companies offer on all payday loans. The types of things covered by payday payment protection plans include illness, unemployment, layoffs, death, and injuries. These payday protection plans offer peace of mind and security for your payday loan advances. When you haverepparttar payment protection plan you will not need to worry aboutrepparttar 149715 unexpected, you will already be completely prepared for it.

The payment protection plan was designed with unexpected layoffs and terminations in mind. If you are released from work either temporarily for an unscheduled layoff or are terminated duringrepparttar 149716 duration of your payday loan thenrepparttar 149717 payday payment protection plan will coverrepparttar 149718 cost of your loan and your loan will be paid in full byrepparttar 149719 payday payment protection insurance company. This gives clients a sense of security with their payday loans.

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