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How to create a simple financial plan?

Are you happy with your financial history?

Have you already received a salary this month? Who would not be happy if we receive a paycheck? But for some of us, this date also makes us dizzy, the article of the bill began to arrive. For some people, this is compounded by the debt that piled up like mountains.
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Choose your plan now. 

The dilemma arises when we are not earning enough to pay the entire debt burden us ... sometimes even just to pay the minimum payment. Well if so how dong. Thus, this article will discuss how to cope with debt that wrapped around us.

Often in our minds appear ... Pay now or later?

Not paying off debt is a way to entertain themselves while burying ourselves in our financial death. It is not unreasonable if we vacation, or a luxury for a moment with a minimum payment for life. Cool term enjoy now, pay forever ... he he he ... because the facts show that our debts will be paid for thirty years if we pay the minimum monthly repayments.

So how to get around the same time killing our debts?

   1. Make a list of all our debts.
Make all of our debt list. List of debts must be sorted from largest to smallest. Be sure to include the interest rate applicable to each of each debt.

    2. Prioritize payment
Pay the smallest debt first. Pay off so as not to further burden to us. While the minimum pay for a larger debt. If a small debt can be completed move on to bigger debt. We can also finish with a high-interest debt first, and a low-interest. Experts also recommend us to pay at least twice the minimum payment so that our debt will be completed in less than three years.

     3. Do not settle debts with other debts.
In other words, do not open up credit card debt to settle past debts even with the lure of free balance transfers. (Except if the free transfer was followed by free interest. This also is to be done with expert advice.)

Believe me, complete the hole by digging a hole will make you more dizzy.

       4. Close (card) of unused credit card
If you have completed your debts, we must take firm steps by closing unnecessary credit cards. In addition to saving expenditures cover the annual fee credit card we will certainly reduce the temptation to spend excessively.
       5.  Freeze our credit cards at home
Sometimes we could not resist the temptation mega bazaar sale, discount and rebate that is drawing us to actively shopping. But on the other hand, sometimes we still really need a credit card (for auto payment for example) it's good if memusiumkan card on our cabinets alone.
Freeze the card in the freezer is also a good idea because the melting time will give us time to re-think every time we are tempted to buy goods.

      6. Cut out your credit card
If we fail to curb our willingness to spend a good idea to cut up our credit cards. High-interest debt is like cancer. Cutting cancer is painful but it will make us healthier finances.

     7. Do not owe more

Finally God was confused and will cry if we remain ignorant and repeat our mistakes, despite being reminded. When we paid off debts owed ​​to forget again. Pay every bill on time.

Can you do this? Yes.


Jonathan Pound said...

You make some great points about how to create a budget and minimize debts. IT can be really hard to invest when you have crushing debt. Sometimes it can be beneficial to consult with a financial services professional to help you get on track and then make wise investment decisions.

Judy Wilson said...

I liked some of the advice that you posted for planning my finances. You're right about how I should avoid settling debts with other debts. This piece of advice particularly applies to my situation since I was considering settling my past debts by opening up a credit card account because of free balance transfers. Now, I'll be sure to avoid this so that I can get rid of all of my debts before thinking of opening another credit card account.