Paying off the debt: where to start In many cases, people interested in getting out of debt don't know what to do exactly and where to start. Usually, they don't even know where they spend their money! And that's the reason why you need to write down EVERYTHING. After you do, you will be able to control the situation, and this is already a great part of the job done! First and most important thing is to follow where your money goes each month. Write down the amount of money you spend paying taxes or to pay bills. It may seem difficult and require a lot of time, but it's actually much easier than it seems, and will help you a lot later. Don't stop yet, read on to find why you need it and how it works.
Once you have a list, take a look. Do you think you spent too much? Is there something you could avoid purchasing? What about the way to reduce your costs and therefore increase your income? Yes, this is possible. Think about phone bills, internet or things that you could really live without. It is not easy to refuse things you were used to, but if you do it, you will be able to put it for your debt! Learn to save for anything you buy! Be committed and change your buying habits. What you need to do first is do set a budget. Do it for a week or month. This will be your limit and you will be able to manage your credit debt. To have a budget set is very important as it is the best way for credit debt management. Never forget to update your expenses statement by adding your pay and deducting each expense. What is left will be for your credit card debt. To make it best, the lowest balance of one of your credit cards should be paid off first. If you still can, pay the minimum payment plus extra. Continue this way until that credit card is paid off, and then move to the next lowest balance credit card. This is called Debt Snowball and it means that your credit cards with the bigger balances should get paid the minimum. As soon as you pay off all balances, you will feel much better!
The problem has been that sources of credit have tightened up, dried up or gotten increasingly hard to get. The fact is that in this economy everyone is tightening the belt. Just when sales are down they want proof that you will pay on time. It seems like you spend more time trying to prove your business can weather the storm than in the energy it takes to find new markets for sales.
This is a very important point. It might seem difficult, but it's actually not. Credit card companies can give a lower interest, but they do it without actually advertising it. What you will have to pay is the yearly fee which is about $35. It may seem a lot, but at the end it is really worth paying! If you do, you will get a lower interest rate, your credit card debt will be easier to pay, and you will pay your debt off sooner.
Most Government grants agencies will provide this kind of information available at their website for you to make a necessary check before applying for a grant.
The benefit to get for this type of help form the government is that when they will send you this free money, you are free to spend it as you wish. And even if you felt like there is no hope for paying off bills there is hope for you now.
Never forget the budget you set at the beginning. This is essential! Follow each of your purchases, all your incomes. Write them down, and calculate the amount of money you have for the remaining period. Contact creditors if you find it necessary. They could offer you a payment plan that would make your credit debt payments easier. They could also offer you a lower interest rate which, again is a very good way for you to save some money paying off your credit debt. Don't forget to cut off credit cards and use the snowball method.
Unsecured would be: Business Debts (Leases, vendors, unsecured loans, suppliers, business credit cards, etc.), Credit Cards, Unsecured Bank Loans, Professional Fees, Unsecured Lines of Credit, Repossessed Vehicle Loans, Dental Bills, Collection Agencies Merchant and Store Cards, Hospital and Medical Bills, Unsecured Business Debt, Creditor Law Suits, Collection Attorneys, Judgments and Liens. Also, for most the minimum debt would be from $15,000 - $20,000 or more and service or sales income of over $150,000 or more!
Once you have a list, take a look. Do you think you spent too much? Is there something you could avoid purchasing? What about the way to reduce your costs and therefore increase your income? Yes, this is possible. Think about phone bills, internet or things that you could really live without. It is not easy to refuse things you were used to, but if you do it, you will be able to put it for your debt! Learn to save for anything you buy! Be committed and change your buying habits. What you need to do first is do set a budget. Do it for a week or month. This will be your limit and you will be able to manage your credit debt. To have a budget set is very important as it is the best way for credit debt management. Never forget to update your expenses statement by adding your pay and deducting each expense. What is left will be for your credit card debt. To make it best, the lowest balance of one of your credit cards should be paid off first. If you still can, pay the minimum payment plus extra. Continue this way until that credit card is paid off, and then move to the next lowest balance credit card. This is called Debt Snowball and it means that your credit cards with the bigger balances should get paid the minimum. As soon as you pay off all balances, you will feel much better!
The problem has been that sources of credit have tightened up, dried up or gotten increasingly hard to get. The fact is that in this economy everyone is tightening the belt. Just when sales are down they want proof that you will pay on time. It seems like you spend more time trying to prove your business can weather the storm than in the energy it takes to find new markets for sales.
This is a very important point. It might seem difficult, but it's actually not. Credit card companies can give a lower interest, but they do it without actually advertising it. What you will have to pay is the yearly fee which is about $35. It may seem a lot, but at the end it is really worth paying! If you do, you will get a lower interest rate, your credit card debt will be easier to pay, and you will pay your debt off sooner.
Most Government grants agencies will provide this kind of information available at their website for you to make a necessary check before applying for a grant.
The benefit to get for this type of help form the government is that when they will send you this free money, you are free to spend it as you wish. And even if you felt like there is no hope for paying off bills there is hope for you now.
Never forget the budget you set at the beginning. This is essential! Follow each of your purchases, all your incomes. Write them down, and calculate the amount of money you have for the remaining period. Contact creditors if you find it necessary. They could offer you a payment plan that would make your credit debt payments easier. They could also offer you a lower interest rate which, again is a very good way for you to save some money paying off your credit debt. Don't forget to cut off credit cards and use the snowball method.
Unsecured would be: Business Debts (Leases, vendors, unsecured loans, suppliers, business credit cards, etc.), Credit Cards, Unsecured Bank Loans, Professional Fees, Unsecured Lines of Credit, Repossessed Vehicle Loans, Dental Bills, Collection Agencies Merchant and Store Cards, Hospital and Medical Bills, Unsecured Business Debt, Creditor Law Suits, Collection Attorneys, Judgments and Liens. Also, for most the minimum debt would be from $15,000 - $20,000 or more and service or sales income of over $150,000 or more!
About the Author:
Harris Smith is a personal finance writer interested in home equity line of credit Don't Miss Out! Apply online for cheap Debt Consolidation loans.
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