Debt Free Is the Way To Be

Your prelude to financial freedom

Now, I am mindful and careful of everything I spend.” be

How Much Do I Owe?

In order to get out of debt, you need to know how much you owe. Making a list will give you a clear picture of your personal financial situation, allowing you to begin the process of managing your finances in a way that serves your needs. This is an important step to living debt free.

Debt
Owed

InterestRate

Balance

Monthly Payments

#Remaining
Payments

Car

15%

$6,400 $320.00

20

College Loan 1

8%

$9.200 $230.00

40

College Loan 2

8%

$5,290 $196.00

27

Mom

0%

$2.500 $50.00

24

Ace Hardware

18%

$420 $70.00

6

Levitz Furniture

17%

$150 $75.00

2

Circuit City

19.5%

$1,875 $125.00

15

TOTAL

$25,835 $1,066.00

It’s helpful to know the exact payoff dates of loans. However, it’s more difficult to calculate the payoff date for credit card debts because minimum monthly payments go down as the amount of debt is reduced. In additon, interest varies because it’s calculated based on the balance.
Reprinted with permission of the publisher, from Life Without Debt © 1995 Bob Hammond. Published by Career Press, Franklin Lakes, .N.J. All rights reserved.

Debt-Free Key: 10 Steps For Coping With High Credit Card Bills

  • Develop a plan of action.
  • List all of your assets and resources. Include savings accounts, money market funds, stocks and bonds, 401(k)s, and home equity credit lines.
  • Know what you owe. Rank your credit card debts and loans from highest to lowest by the annual percentage rate of interest.
  • Compare high-cost debts with lower-cost ones. Concentrate on paying off the high-cost debts first.
  • Switch to credit cards with lower interest rates.
  • Compare fees.
  • Know when your cards’ grace periods begin and end.
  • Watch those minimum monthly payments.
  • Pay off some debts with assets such as the money in a savings account.
  • Make credit work for you. Consider taking a low-interest loan from a credit union, borrowing against your 401(k), or getting a home equity loan to pay off higher interest rates.

Adapted from Life Without Debt (c) 1995 Bob Hammond.
Published by Career Press, Franklin Lakes, N.J.

Websites Offering Credit Counseling
American Consumer Credit Counseling www.consumercredit.com
The Center for Debt Management www.Center4DebtManagement.com
Cheapskate Monthly www.cheapskatemonthly.com
Consumer Credit Counseling Service www.debthelpnow.com
1st Consumer Credit Counseling Alliance www.payonlyone.com
Genus Credit Management www.nccs.org
Myvesta.org www.myvesta.org
National Foundation for Credit Counseling www.nfcc.org

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