How Debt Consolidation Can Help to Eliminate Your Debt
Credit card companies are continuously raising interest rates, causing consumers who carry high balances to slip deeper into financial ruin.
Making just the minimum payments on multiple cards each month can be a daunting task.
Adding insult to injury, even those consumers who can make the minimum payments consistently pay against a balance that barely recedes.
It's like trying to bail out a boat that is still taking on water.
Debt consolidation can be the repair your financial boat needs to stay afloat.
By lumping all of your payments into one manageable payment, some extra money can be freed up in the monthly budget.
Beware of this sudden wiggle-room in your budget! Unless your spending habits have been revamped, you are likely to accumulate even more creditors to who you will be enslaved.
Combining all of your debts into one loan is only the first step in eliminating them.
Make a comprehensive budget by writing down everything you spend money on each month.
This includes rent or mortgage payments, credit card payments, car loans, groceries, utilities and insurance.
Don't forget to list entertainment expenses, gifts that are given each month, and even those innocent trips to the convenience store for coffee and lottery tickets.
Once you have everything written down and organized into categories, it's time to get out the red pencil and do some slashing.
The daily expenses like going out to lunch, buying coffee and donuts on the way to work, and the lottery tickets are the first things to be scratched from the budget.
If you owe money to creditors, you cannot afford to be treating yourself to these exorbitant luxuries.
Eat breakfast at home before you leave for work.
Bring a bag lunch along with you, and forget about winning the lottery.
That's a poor man's dream that leads to wasted money and broken hearts.
Once you have a realistic budget that only includes necessities, you can begin to realize how much money can be saved by combining all of your credit card and loan payments into one payment.
Now take seventy-five percent of the money you are saving by consolidating debt, and add it back into the new loan so you can pay it off that much faster.
This is the only way to completely eradicate debt and begin to live within your means.
When your obligations have finally been met, take that same payment you were making on the loan and pay it to yourself.
Your savings will soar, and so will your spirits!
Making just the minimum payments on multiple cards each month can be a daunting task.
Adding insult to injury, even those consumers who can make the minimum payments consistently pay against a balance that barely recedes.
It's like trying to bail out a boat that is still taking on water.
Debt consolidation can be the repair your financial boat needs to stay afloat.
By lumping all of your payments into one manageable payment, some extra money can be freed up in the monthly budget.
Beware of this sudden wiggle-room in your budget! Unless your spending habits have been revamped, you are likely to accumulate even more creditors to who you will be enslaved.
Combining all of your debts into one loan is only the first step in eliminating them.
Make a comprehensive budget by writing down everything you spend money on each month.
This includes rent or mortgage payments, credit card payments, car loans, groceries, utilities and insurance.
Don't forget to list entertainment expenses, gifts that are given each month, and even those innocent trips to the convenience store for coffee and lottery tickets.
Once you have everything written down and organized into categories, it's time to get out the red pencil and do some slashing.
The daily expenses like going out to lunch, buying coffee and donuts on the way to work, and the lottery tickets are the first things to be scratched from the budget.
If you owe money to creditors, you cannot afford to be treating yourself to these exorbitant luxuries.
Eat breakfast at home before you leave for work.
Bring a bag lunch along with you, and forget about winning the lottery.
That's a poor man's dream that leads to wasted money and broken hearts.
Once you have a realistic budget that only includes necessities, you can begin to realize how much money can be saved by combining all of your credit card and loan payments into one payment.
Now take seventy-five percent of the money you are saving by consolidating debt, and add it back into the new loan so you can pay it off that much faster.
This is the only way to completely eradicate debt and begin to live within your means.
When your obligations have finally been met, take that same payment you were making on the loan and pay it to yourself.
Your savings will soar, and so will your spirits!
