Debt Consolidation

Make your debt free plans today and follow the path to stay debt free. Having a plan in place will keep you from entering the out of control mire of high interest rates on loans and credit cards. These only serve to keep you down and in debt.

The three steps to action are quite simple to follow.

Step One

Make a list of all your bills. Start with the largest and list down to the smallest. Put 3 columns beside each bill. List the amount owed, the minimum payment and the interest rate. By lising these in this manner you will have a clear picture of what you owe.

Step Two

Prioritize your bills. Decide if you want to pay off the smallest debt first or the debt with the highest interest rate. The choice you make here will be your starting point. All extra funds will go to paying off the bill you choose to place for pay off first. Pay the minimums on all others.

The key is to at least double the minimum on the bill you are paying off first. Doing that will get it paid off a lot faster. Any extra funds you have should also go towards paying this bill off. Once this bill has been paid in full, move down your list to the next one, and do the same process with it. And so on till each one is paid in full.

Step Three

Most importantly, while working on paying off debt do not go into further debt. When a debt is paid off completely close the account. Keeping a credit card with any limit will only serve to tempt you. If you start to use it, you will wind up in the same debt you are presently in. So get rid of all credit cards that are paid off.

Once you pay a debt off, close the account. That way temptation won’t get you. Don’t be tempted to pay balances with open balances on credit cards. Keep your debt free goal in mind at all times.

For more information on becoming debt free visit http://www.debt-or-freedom.com. See more options to getting out from under credit card debt: http://www.debt-or-freedom.com/credit-card-consolidation.html

I am James Mizzell, owner of 3 websites;
www.debt-or-freedom.com
www.uniquegiftsandfigurines.com
www.melanesianskincare.com
I am retired, living in Florida and working on another site.

Article Source:http://www.articlesbase.com/debt-consolidation-articles/3-easy-steps-debt-free-plans-that-work-1488020.html

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This entry was posted on Tuesday, November 24th, 2009 at 5:35 am and is filed under Debt Consolidation. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.