 Wysłany: Sob 21:59, 12 Mar 2011 Temat postu: 0025 |
|
| An Easy Guide To Sorting Out Your Debt Problem
One of the biggest problems for most people nowadays is that it is very easy to know that you have a debt problem but it is very to know exactly how big that problem is. You could be surprised to hear that a very significant proportion of those people with debt problems have no idea how much they actually owe or how much in total they are paying in interest charges on their accumulated loans every month. So, the first job in sorting out your debt is to discover exactly how big the problem is. Write down all the debts which you presently have, noting down how much of the original debt is still outstanding and how much you are paying every month. You also want to separate out each payment to see how much of the payment represents a repayment of the original borrowing and how much is simply interest. You may well be stunned by what you find, not only in terms of how much money you actually owe, but in terms of how much of your monthly income is simply being used to repay interest. For instance, if you are earning $4, 000 a month and are paying $400 each month in interest charges then this means that you are paying out 10 percent of your monthly income without actually reducing the overall amount you owe. If this sounds bad enough, then take it one step further. If $400 is the most you can afford to pay each month then you can go on paying this sum for years without lowering your debt at all. Hopefully the difference between the sum which you are paying in interest charges and the sum being used to repay your original loans will be more realistic and it is difficult to quantify exactly what this should be because it will vary from one loan to the next. For instance, in a normal home loan it is not uncommon to be paying 90% interest and 10% principle in the starting years of a mortgage, however you most certainly do not want to be doing this with your credit card debt. Once you have worked out the extent of the problem the next thing you should do is to draw up a plan to pay down your debt as soon as you can. Here you are going to need to work out how much in total you can afford to pay every month and then decide how this money should be divided between your various different debts. One solution is occasionally referred to as the 'snowball' approach and involves clearing your smallest debt first. You then have a greater sum of money available to pay off the remaining debts and can progressively work your way up to your biggest debt. Another solution to the problem is to tackle the largest debt first and so save the most money in in essence wasted interest payments. This is not an easy method however and progress is slow making it difficult to stick to this plan. Whichever plan you decide to follow you must not just ignore some of your debts while paying off the others or you will run into trouble with your lenders and adversely affect what might already be a damaged credit record. If you find that coming up with at least the minimum payment required on all your debts then you must talk to the lenders concerned and see whether they can help. Most lenders will have a debt reduction settlement program and they will frequently agree to help you by accepting lower payments for a short period, or possibly even to waive your payments for two or three months, if you explain your situation to them. If you have got yourself into a mess and are sitting down trying to work out how to deal with your debt then do not make things worse by taking on more debt. This might appear to be obvious but you would be surprised how many people try to borrow their way out of debt. This does not work and simply makes a bad situation much worse. TheDebtAssistanceCenter. com provides all types of help with debt including such things as settling credit card debtTopics related articles： 8935 article12471 3024 |
|
