Debt Free is the desire of every person who has a lot of debt, they always longed for someone to make it free from debt. With a debt-free will create a person who seemed to be free from debts prison. But this is life, life without challenge seemed this life has no meaning. Do not ever run away from problems but face problems with a wise heart, remember god always near you. With some of my debt free easy tips to help you pay off your debts.
“People who live with many of the problems is that reasonable people, people live without any problems is precisely the problem”
- Calculate the entire debt. Do you know the total amount of your debt now, how much interest rate and how long will it take you to pay it off? Most people do not know. Collect all the notes and make a list of monthly bills. That way, you'll get a comprehensive overview of your obligations to pay debts.
- Lust Brake Shop. To pay off debt, you first need to know where the money you have. Daily evaluation of your money. Perhaps, you will be surprised to realize that as long as you spend this money more than you think to the things that are not necessary. After that, write down every dollar you spend the next month, so you do not repeat patterns that make spending your money runs out.
- Negotiate Debt. Apply for a loan mortgage interest rates decline to the bank. Tell your financial situation is difficult. Each bank usually has some alternative way of loan payments, you can choose according to your financial condition. Observe the pattern of changes in interest rates. Do not get stuck on a pattern of loans that initially look 'pretty', but in fact will increase the interest in the next month. If the bank refuses your application, consider moving to another bank loans have lower interest rates.
- Monthly income divides. 35%: rent or mortgage payment (including taxes, insurance and maintenance); 15%: transport (including petrol, insurance and vehicle installment loans); 10%: Daily savings: 15%: to pay other debts (including credit cards); 25%: the future of your (investment). However, the percentage formula applied flexibly in accordance with the financial condition of each family.
- Prioritize payments. First: urgent debt, with a high value, high interest and importance to their daily activities, such as mortgage loans, home or car, if not repaid may be confiscated, so that interfere with your productivity. Second: Debt related to family interests, such as loans for school children which if not paid, can make your child's cross from the list of students. Third: Credit card debt. If you have more than one, which amount to prioritizing and high-interest first.
- Search for more money. When was the last time you measure income from work now? If you're an entrepreneur, the last time you increase your profits? Nothing wrong with raising prices on goods up to 10%. As a rule, it is still acceptable for the client. Add money, see. The goods belong to you. There may be valuable to sell. Keep your home or garage sales to join organized similar events. If successful, it is not impossible you home in your pocket money more than a million dollars.
- Mileage hardest choice. If the 6 steps above are not enough, maybe it's time you sell a luxury car and replace it with a cheaper (both price and operating costs). Or, move to the purchase price or cheaper rent. In fact, what may make, maybe you should move the child's school to school cheaper.
- Needs charging. When an emergency fund have been met, you should immediately begin to invest. If you can spare $ 1, - per day and assuming a fixed interest investments is 8% per year. You will have $ 5,700 in 10 years or $ 18,000 in 20 years. If you do not use this investment, in 30 years you've collected $ 500,000. Free from debt, your life even more established. This is the formula: Year I: + initial investment (initial investment + interest) = $ 1 x 365 days + ($ 1 x 365 x 8%) = $ 394.2, Year II: Results of the first year investment + (return of investment in the first two years + Investment) x rate) = $ 394.2 + ($ 394.2 + ($ 1 x 365) x 8%) = $ 817.6 and so on.
Similarly tips from me about 8 easy ways to go debt free, may be useful for those of you who have many debts, and who have no debts to the 8-step use to invest. If you ask questions we will try to help you. Thank you for reading this article.