Money Tips

How to Reduce your Debts:

Get a handle on the problem; then take action by using these six steps:

  1. Make a List of what you owe. List the name of the creditor, amount owed and monthly payment. Add up the amounts owed and monthly payments.
  2. Prioritize to determine which debts are most serious, requiring immediate attentions, such as foreclosure or repossession.
  3. Communicate to your creditors where problems exist. Call them and let them know you are making every effort to develop a repayment plan. Listen to any of their proposals. Never agree to a repayment plan you cannot do.
  4. Use your assets for debt reduction. For example, covert your whole life insurance to term insurance, sell stocks or bonds and use your savings to pay down the debt.
  5. Adopt an emergency budget plan and put more of your income into debt repayment. Eliminate all but the most necessary expenses for a period of time.
  6. And last LIVE ON CASH. Cut yourself off from more credit. Get rid of plastic.

Remember, a budget is a performance check. It can be rearranged as successes are met.

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