Welcome to my blog.

Please join me on my journey through out my trials and tribulations, my achievements, and occasional venting.

Reducing your debt a little at a time

Reducing your debt a little at a time

We all have debt, and we all hate it. It makes us feel as if we are living paycheck to paycheck, and like we are working just to pay bills. Here is a tip on how you can reduce your debts and still have enough money to do a little something to enjoy life. But first you have to remember, everything fun does not cost! So find fun events going on in your city to do, venture out and try things you have never tried before. Like going on a hike, checking out some of the parks you may have never heard of. There are plenty of things out there to do; you just have to do your research.

*************************************Disclaimer********************************

I am in no way shape or form a financial adviser or an expert in bad debt; I am giving you tips and advice that has worked for me in the past and continue to work for me. So use this advice at your own discretion.

*************************************Disclaimer*******************************

First off, sit down and figure out your debts, then figure out how much income you have coming in, and how much you have going out. Budget your money accordingly, remember to add in savings, Misc., and entertainment (By entertainment, I don’t mean break the bank). It’s like giving yourself an allowance to do something fun. Plan out your meals, and make a grocery list, eat out less, and find things to do that don’t cost you money.

Now I am going to explain this how I explained it to a friend, she had a payday loan, a Loan she paid on monthly, and two credit cards, not to mention her rent and car payment. So my advice to her was to reduce her payday loan every payday. For example (Not telling her name so I can say what she paid every two weeks on this loan). She paid $587.50 on this loan every two weeks; she only borrowed $500 so that was $87.50 of wasted money. I told her every payday reduce this loan by $50 dollars until it is paid off.  Here is the trick; you remember that $87.50 of wasted money? Take the difference between the $87.50 and the reduced interest every time you pay the loan down, and add that difference to your next lowest bill. (Example, you reduce by $50, you fee goes down to $56 there is a difference of $31.50 to add to your next bill) after that is paid off take the entire $87.50 and pay it toward the next lowest bill, whether it is one of the credit cards or the monthly loan, until it is paid off. (After all you are not missing this money anyway).

So think about it, you have paid off the payday loan; you have now been using the money that you were paying in interest towards another bill. So say the balance on your monthly loan is $2000 and you pay $160 a month, now you add that $87.50 to what you pay and now you are paying $247.50 on that monthly loan, reducing what you owe faster and reducing your debt. Think about it this way, you were already paying that money out, so it is not anything that you are missing.

Here is where it gets tricky, you have paid off both loans, and you still have the $247.50 to pay toward the next lowest bill which would be one of your credit cards. (This is on top of the payment you are already making) You can either take the full amount and add to your credit card or split it in half and add $123.75 to each of your credit cards left until they are paid off.  You can continue this pattern with your car payment if you like. This is an easy way to become debt free, although I am still working on some of my debt, it is working for me. Hope this little tip helps you and in the end you will be able to enjoy your paychecks. Remember to be patient and look at the big picture at the end.

signature.png

 

 

Needing help with your website

Needing help with your website

“Don’t let fear stop you from accomplishing your dream.”

“Don’t let fear stop you from accomplishing your dream.”

0