Archive for the 'Finance & Debt' Category

Strategies for Eliminating Personal Debt

Do you lie awake at night stressing under a mountain of personal debt? Debt hangover from credit card usage for discretionary purchases can become a financial noose. The sacrifices necessary for delayed gratification far outweigh the heavy burdens posed by credit card debt. There is a way out – and it involves substantial amounts of self-discipline. Follow these recommendations from the professional financial advisors to begin your journey to eliminate personal credit card debt.

For any goal to succeed there must be a detailed plan that can be executed in realistic steps. The first step is to create a spreadsheet listing each of your credit card debts, balances and minimum payment requirements. Arrange these in ascending order with the lowest balances listed first.  Total the outstanding balances. Set a date by which you wish to eliminate these balances. Divide the number of months between now and your goal by the total outstanding balance. This is the sum that you wish earmark each month towards debt elimination. You can break this down further by weeks or even days.

Always pay the minimum amount due on each card during this pay down process. Plan to pay off the credit card with the lowest balance first. This will allow you to see progress towards reaching your goal. The next step is to identify your monthly discretionary spending budget. Subtract your fixed expenses, this …

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