Friday, January 2, 2015

Using a Debt Snowball to Eliminate Debt








Of all the personal debt solutions, the DEBT snowball method stands out as the one that anyone can relate to and apply to their own lives. You are standing on top of a snowy hill and you make a little snowball. This snowball is what you can pay on your CREDIT card bill each month. It's not much. You might wonder if it is good enough. But don't worry about that. Instead, send it down the hill. As it rolls down, it gains speed and it picks up more snow as it goes. Soon, your little snowball isn't so little. When it gets to the bottom of the hill, you have a large snowball that you can apply to your monthly DEBTS.
The DEBT snowball method for eliminating debt is perhaps most famous for its recommendation by the financial guide Dave Ramsey. It's accessibility makes it appealing to those who have tried more complicated means of DEBT elimination but failed.
The first step is to list out all of your debts. There are two different ways you can order your list, each with its own advantages and disadvantages. The first way, and the way recommended by Ramsey, is to list your debts in order from least to greatest. Next to each one, write the minimum payment each month.
For example, you have a Sears card that you owe $50 on, and your minimum payment is $5.00 a month. You also have a Visa with $643 owed and a monthly payment of $52. Finally, you have a MasterCard a balance of $2,430 and a monthly payment of $100.
To get started, pay the minimum amount monthly on each of your debts. For the first debt, find extra money so that you can pay it off as soon as possible. Eliminate un-necessities in your life, sell some possessions, or get a second job. Instead of five dollars a month, you discover that you can afford to pay twenty-five dollars. Pay that each month and you will have that card paid off in two months time. An important note: do not spend any money on your cards while you are doing the debt snowball. Pay for things in cash or use your debit card, not a charge card.
At the end of the two months, you have an extra monthly twenty-five dollars freed up. Apply that to the next smallest DEBT. In the sample list, you will now be paying $77 a month on your Visa instead of the $52. Repeat this process until you have eliminated all of your DEBT. This process might take years, but can be sped up if you find ways to increase your income while decreasing your spending. Any "extra" MONEY can be applied to the snowball.

The other way to list out your debts is to list from the highest interest rate to lowest interest rate. This will save you money and make your DEBT elimination go faster. Some people who use this method, though, get discouraged because it does take longer to see the results. If you use this method but find yourself wondering if you'll ever pay off your debts, pay a small one of before returning to the high interest LOAN. When applying the debt snowball, your focus and determination are the most important things. With those you will find yourself paying off your debts no matter how you have them listed.






 Click Here to see how I made Millions of Dollar buying Debts 
Posted by at No comments:
Labels: , , , ,

Eliminating Debt - 3 Debt Elimination Secrets From Debt Free People

http://cdncache-a.akamaihd.net/items/it/img/arrow-10x10.pngMany people are on a roller coaster called DEBT. Their DEBT goes up and then they pay it down and then something comes up so DEBT goes right back up.It seems like we are going in circles. Everyone knows someone somebody who is financially free. What did they do to get them there? They put there minds to it and stuck with there plan. Here are a some of the secrets of the financially free.
1. Debt Snowball 
This is the number one secret. This method has been proven successful by most financial experts. Here is how it goes: list your smallest debt first all the way to the largest. Pay as much as you can on the smallest while just paying the minimums on the rest. Finally, take what you were paying on that debt, and add it to what you are already paying on the next smallest debt. This is how your payments snowball. When it comes time to start paying more on the final debt, you will have a large amount of cash to pay it off with.
2. Stop Spending 
The second secret seems obvious, but it is the hardest one to accomplish. Creating more debt will just get in the way of eliminating your debt. Only spend money on what you need, not what you want.
3. Create a Budget
Finally, you need a budget. It is surprising how many people do not have an active budget. Some people just have an idea of how much they can spend but do not have an exact amount. Sit down, bang out a list of bills and expenses, and pay off your debt with the rest of the money.
If you need credit or debt advice, visit Credit Help Pro at [http://credithelppro.info] They have all the information you need about credit or debt and some great deals on credit cards, debt consolidation, and Loans for people with Bad Credit
Posted by at No comments:
Labels: , , , ,

Get Out of Debt in Three to Five Years With the Debt Snowball Method

With the economic downturn, the MORTGAGE crisis, high gas prices and the rising costs of basic necessities, many people are now looking for ways to get out of debt fast. While it may seem like an impossible task to accomplish, you can achieve this goal of being DEBT free in as little as three to five years with lots of discipline and determination by using a method called DEBT snowball.
By snowballing your debt, you will a be able to quickly payoff your outstanding balances faster than you ever thought possible. This method allows you to use the INCOME you are already making; however, if you want to achieve faster results, increasing your income would make that possible.
To get started, follow these easy steps to get on the path to quick success.
* Gather all bills, make a budget for all EXPENSES, and determine where you can cut back to save money.
* Look at your balances on outstanding debt and decide which one you will payoff first. Choose either the one with the highest ANNUAL PERCENTAGE RATE or the one with the lowest balance.
* Pay your minimum payments on all ACCOUNTS, but apply any EXTRA MONEY you have towards the balance you are tackling first.
* When the first debt has been paid in full, take the amount you were paying on that debt and add it to the minimum payment for the next ACCOUNT.
* Continue to repeat this process until all ACCOUNTS have been paid off.
By using this method, your balances should rapidly decrease, especially as your payments made becomes a bigger snowball with each ACCOUNT paid off. This is a very effective way to get rid of those cash sucking bills. Now is the time to take control of your finances so just be focused and determine and you will get out of debt fast.
Posted by at No comments:
Subscribe to: Posts (Atom)