January 30, 2009

Tips to become a Debt Free Person

Hello friends, do you want to become a debt free person? I have a solution for you. Let’s take have a look into the following:

1.
Make a list all of your debts.

2. Always try to pay at least your minimum payments every month on time.

3. Make the full payments of those accounts (a) The account with the highest interest rate, or (b) The account with the lowest balance.

4. Try to continue to make minimum payments and extra payments until your 1st account’s payment is over.

5. The minimum payment which you were paying to the 1st account, try to combine it with the extra payments and pay the entire amount to the 2nd account on your debt list.

6. Try to continue this process of making payments of your accounts and also combining those minimums with extra payments until you are become a debt free.

Some additional ideas for you, should keep in your mind:

1. If you have many credit cards, you can move debt from a credit card with a high rate to a credit card with a low rate by balance transfer facility. But you should keep in you mind the balance transfer charges.

2. You can also call your credit card company and ask for lower interest rates. Sometimes they are providing lower interest rate to the customer according to the credit amount. The more you save money then the more money you have to reduce debt. Even every dollar matters, if you only have five then pay those five dollars.

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