Debt Reduction: A Guaranteed Plan That Really Works
By:
Dan Cavalli Business and Money Strategist
You may already know that you carry too much debt, but do you know how to get rid of it? If you had disposable income left over each week, it would be simple. But if you’re like most people, you live paycheck to paycheck, and it takes every penny you earn just to pay the bills. Without any money left over, it can seem impossible to dig out from under your financial problems. But it is possible.
Debt reduction is possible if you make a few changes. In an ideal world, debt could be reduced immediately with a second mortgage or debt consolidation loan. If these avenues have been shut off to you, you need a real plan…a plan that you can execute yourself. Fortunately, there is such a plan, and all it requires is dedication, motivation and a little bit of your time and effort.
Take a look at the following step-by-step plan: 1. Find hidden sources of cash – Hidden sources of cash include any and all ideas that will earn you extra money. Have a yard sale; sell some stuff on eBay; and take a second job‌anything that earns you money. Put all the money that you earn into a separate account. You will need it later.
2. Save money wherever you can – Cut out all unnecessary expenses. If you can turn off your cable for a bit, do so. Cancel membership subscriptions. Stop eating out. Stop going out. Save, save, save! Again, put the money saved in a separate account.
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3. Lower your interest rates – Call your creditors and ask for lower interest rates. Combine credit cards together if at all possible. If you have two accounts held by one lender, ask the lender to combine the accounts and lower the interest rate. All of this will lower the amount of money that you have to pay out each month thus freeing up some cash. Put free cash into separate account.
4. Debt reduction 101 – Now that you have money put back into a separate account and money being put into the account each month, it is time to reduce your debt. First, take the bill that has the highest interest rate. Put all of the money that you have left over each month toward the principle balance of this bill. Keep paying all of your other bills on time, but concentrate on one bill to pay off quickly. Once the bill is paid in full, move onto the next one.
Whatever you do, do not purchase anything on credit during this debt reduction period. The goal is to get everything paid off. Paying more than your minimum payment each month will help you pay off your debt quicker and avoid needless, expensive interest charges. Saving money on interest charges equals more money that you can put back to pay off your debt burden. As you can see, a few small changes really add up.
More than 179,000 people have taken advantage of Dan Cavalli’s FREE 20lesson e-course, which offers not only tips to reduce debt, but guidance on how to make and manage money, build a successful business and say goodbye to money worries at
www.the-richest-man-in-babylon.com
About Dan Cavalli He learned financial fitness firsthand. In 1995, he started his first national business with nothing, but grew it to more than 35,000 customers and $140 million in revenue in less than 18 months. “The Financial Review," Australia's leading business newspaper named Cavalli as one of the country's “Internet’s Untold Millionaires."
More recently, Cavalli's mission has shifted to helping others achieve similar success. He is the author of the internationally sold financial book, "Blueprint for Making Millions."