Want to learn a method to become DEBT FREE? Here's a recap of a real life success story you don't want to miss!
I had to comment on an article I read in the 4/2/14 edition of The Oregonian newspaper.
The title was:
"Couple put strategy into action, paid off $127,000 in debt"
Here's a recap of what they did:
Had over $127,000 of debt:
- Student Loans
- Credit Card debt
- Auto loans
- Personal debt
It took them a little over 4 years, but they were able to pay off all of their debts and are now living DEBT FREE!
HOW'D THEY DO IT (HOW YOU CAN TOO):
Find ways to save money/increase net funds. Here are some things you can do:
1. Adjusting your tax withholding.
If you are getting back a large TAX REFUND each year, consider changing the number of dependents/withholdings. This alone generated about $100/month extra to put towards debts.
2. Cut your household budget by trimming unnecessary "luxuries" (you can add them after you are DEBT FREE!)
Using grocery coupons. Become a "coupon expert". This alone could help save you 20%-30% off your grocery bill each month!
Do you really have to have a "Starbucks" coffee each morning? At an average of $4-$5 per day, that adds up to $100 -$150 each month!
Take a hard look at additional monthly expenses that you could "live without"...
- Gym membership (you rarely use)
- Magazine subscriptions
- Too many "premium cable channels"
- Going out-to-eat several times a week
I know...but think about this...
As hard as giving some of those things up seems,
HOW GOOD WOULD IT FEEL TO BE 100% DEBT FREE?
OK, you get the idea. So now you've found an extra $100 -$200 per month.
3. What now?
List all of your debts showing:
- Interest Rate (not as important as you think at this point)
- Minimum payment
Sort by the smallest balance first (don't worry about interest rates).
You are going to make all of the minimum payments, but you are going to add the extra (let's say $150/month) you found by making sacrifices, etc. to the smallest balance.
Once that one is paid off, you are going to add the extra $150 plus the minimum payment required on that smallest balance and add that to the minimum payment you are required to make on the second smallest balance.
Let's say you had several cards, but the Visa Balance was $1000 and the Discover Balance was $2500.
The minimum payment for the Visa was $30/month and the Discover was $65.
You are going to make a payment of $30 plus $150 to Visa until it is paid off. At the same time, you are making the $65 to Discover as well as all of the other minimum payments required.
Once the Visa is paid off, you are going to take the $180 ($30 + $150) and add that to the $65 due on Discover. Now you ar making $245/month to Discover (and all of the other minimums as well).
Once the Discover card is paid off, you take that $245 and add it to the mimium on card # 3.
Get the idea?
Can you imagine how excited you will be when you start seeing those balances down to $0!
Yes, it won't happen over night, but before you know it, you are going to be 100% DEBT FREE!
This is not a new idea. This is a Snowball Debt Reduction Plan.
If you are serious as this couple was, get your Snow Ball Calculator today!
This all sounds great, you say, but what if you can't keep up with the minimum payments despite making cuts trying to find extra funds, etc.?????
That is a very real problem that anyone that has had:
- Loss of employment
- Death in the family
- Illness or Disability
...can attest to.
If you cannot afford a Snow Ball Debt Reduction Plan, then you should consider a...
DEBT SETTLEMENT PROGRAM
Debt Settlement is for those who are doing and trying everything they can to keep from seeking bankruptcy protection.
Basically, funds are deposited in a bank account until there are sufficient funds available to begin negotiations with your creditors/debt collectors.
Depending on several factors, your debts may be settled for 50% or less.
Regardless of your financial circumstances, there is a solution!
For more information about the couple who paid off the $127,000, visit their website at: