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A Guide to Debt Consolidation Loans
Should you find yourself overcome by debt, you might want to consider debt consolidation loans. These loans are designed with the person in debt beyond their means in mind, allowing for repayment of the outstanding debts while combining multiple...

Credit Counseling -- Why It Doesn't Work for Most Debtors
"Cut Your Payments in Half!" the headline screams. "Consolidate Your Bills into One Low Monthly Payment!" When you see ads like this, they are often from Credit Counseling firms. In this article, I'll explain the principles behind the Credit...

Debtor's Ethic
Faith Fellowship Church.PO Box 1586.Broken Arrow, OK 74013.Pastor Terry Dashner.918-451-0270 “Beware of the Debtor's Ethic” “Good deeds do not pay back grace; they borrow more grace.” John Piper Can a bad motive spoil a good deed? Should we, the...

The 7 Secrets to Getting–and Staying–Out of Debt
As vice president of the American Credit Foundation, a nonprofit organization that helps individuals and families manage their debt, Mike Peterson knows firsthand how financial problems can wreak havoc in one's life. Each day, counselors at the...

When Bad Debt Happens to Good People
An overview of ways to stop the cycle of credit card debt and cultivate a healthy, healing attitude. Now that the holiday shopping frenzy is upon us, I thought it would be a good time to bring up the issue of “bad” debt. You know what kid of...

 
Stack Your Debts: A Simple Four-Step Plan To Reducing Your Debts


Are you feeling trapped by debts you accumulated long ago?

If you are able to pay your current expenses – and aren't sinking further into debt – but you're still feeling dragged down by old debts and nagging monthly minimums, this plan is for you.

It's a simple four-step process you can follow to help you regain control over your finances.

Step 1 – List all of your debts, starting with your smallest debt (no matter what the interest rate), and followed by your larger debts. In your list, write down your largest high-interest debts (such as those from credit cards) before your largest low-interest debts (such as lines of credit.)

Step 2 – Continue to pay the minimums on all debts and put extra money toward the smallest balances first. When you do so, you will feel motivated and empowered in the debt-elimination process and soon you'll be paying off even more of those debts, and crossing the debts off your list, one by one.

Step 3 – Roll your payments forward. When you have paid one debt completely, add the funds that you were paying toward that debt to the next debt on your list. For example, if you are making $150 payments to your smallest debt, you would add that $150 each month to the next debt on your list once the smallest debt is paid off. When the second debt is completely paid, roll all of these payments to the third debt until all debts are paid.

Step 4 – When all of the debts on your list have been paid off, take the money that you had been using to pay these debts and put it in savings or toward your investments. This will insure that you are not creating a higher cost of living for yourself once your debts are paid.

This simple plan can help you develop the discipline for a bright financial future as it helps you to pay off debts fast.



About the Author:

Susie Cortright's website - http://Momscape.com - reviews a debt elimation program here which goes more in-depth on this debt stacking process. http://www.momscape.com/debt-elimination/reviews.htm

Source: www.isnare.com

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