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| Debt Disaster Relief E-Book |
| Having analyzed our situation we can now build a plan. There are many theories on the best way to go about paying off debt. Some stem from paying off the higher interest rate cards first to spreading higher payments amongst all of your debts. Consolidation loans along with taking a second on your home to pay off debts are also very popular methods.
The method used here is the divide and conquer method. It produces immediate results and you simplify your life and your bills at each step along the way. It provides for more satisfaction in that you can see your debt decreasing. I believe this is by far the best method based on my personal experiences with debt, experiences of others that I have helped, and my experience in the credit card industry. The most important thing is to take action. So let�s get started to get out of debt! With the divide and conquer method we will reorder our chart based on the amount owed for each. Our goal is to start at the bottom and to pay off debts one by one starting with the lowest balances. So let�s re-list our debts in our chart by putting the largest debts at the top and the smallest debts at the bottom. |
| Getting out of debt |
| The next thing we will look at is our budget. Do we have any extra money in our budget to pay towards our debts? Are we able to cut any of our expenses temporarily or permanently in the effort to pay down our debt? Are we able to pick up a few extra hours at work, work a little overtime, or maybe sell unwanted items to make some extra money?
When looking at a household budget it is very important to track how much you spend on food, gas, clothing, movies, dinners out, and even the small stuff like coffee drinks. Though things may be tight, there is always room for improvement somewhere. |
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