Be Debt Free

Zardoz


Isn’t the National Debt increase of 1.49 billion dollars per day enough for him? Does he want to bankrupt the country faster?

http://www.lafn.org/politics/gvdc/Natl_Debt_Chart.html
Thompson is also calling for an increased bankruptcy.

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Suzanna Pepper


Debt can be easily reduced. There are several ways to reduce debt. If debt becomes too big, then a person can even be declared bankrupt. According to a Federal Reserve study, 1 out of every 100 families in America declare bankruptcy every year. This spells badly for the economy too. This means that there are no savings for the future. Savings are required for future capital investment and generation. In fact China is a country where the savings per family is the highest in the world.

The reduction in the debt will help us to buy goods and services that we want to by, pay for the future bills such as medical and home bills when we are unable to earn. Savings in Debt reduction can fund a second home or education for your children. For most families the major chunk of debt is the credit card debt and the cash advances taken against credit cards. Its necessary that the credit card amount be paid in full and not the minimum balance. By paying minimum balance, you are incurring debt as well as interest charges. The credit card companies can charge an interest rate of almost 36% compounded annually. Therefore it’s best to clear out accounts and not revolve the credit. Resist from paying the card bill with another credit card. At the end of the day you would need to repay the amount.

Another chunk of debt is the payday loans, which are taken to override short-term cash problems. For example if you have issued a check for the electricity bill and don’t have cash in the bank, the payday loan will cover the shortfall. However these need to be paid back within a week. If not the loan sharks can charge a hefty rate of interest. Therefore it’s essential that you reduce the debts for a safe and secure financial future.

Antonio Silver


There are an astounding number of people with debt problems, especially with the wide range of credit products available these days. If you are one of these individuals, it might be a good idea to get your debts under control before it is too late. If you are barely making minimum payments or are missing payment altogether, you should start working on reducing your debts as soon as possible.

First, you should gather your statements and record the amount of your debt, and how much is required as a minimum payment each month. Then, create a reasonable budget that you can follow to achieve more than the minimum payment. Paying the minimum on your debts may take decades to pay off in full, so your goal is to make a payment which exceeds your minimum obligations.

Extra Line of Credit

Those with decent credit ratings can also look into opening an extra line of credit, one that has a lower interest rate than the ones that are being paid. This is a debt consolidation option where you are consolidating your debts and making one payment each month. This option is convenient, easier, and can save you much money on interest in the long run. You can also take out home equity loans or personal loans for the same purpose.

Another choice is to call your creditors to see if they can help out in any way. Kindly ask for a lower interest rate, or explain your financial troubles. Usually, they can help in some way, even if it is simply moving your payment date to a better time of the month. Remember, it never hurt to ask; the worst they can tell you is that they are unable to help. If you hear such an answer, it might help to ask to speak to a supervisor or someone of a higher position.

Cut up Your Credit Card

Reducing your debts also means leaving those credit cards at home or stowing them as far away from your wallet as possible. You can do this by cutting up credit cards or by storing them in an inconvenient location, such as a bank deposit box, your attic, or a storage bin. Never take them with you, and remind yourself daily that credit cards are for emergencies only.

If your debts are unmanageable, or you are unable to reduce debts on your own, it is okay to ask for help. Credit counseling agencies are available at your disposal for this purpose. You can find a decent one by looking around online or by browsing your phone book. They can help by setting up a budget, managing your payments, and negotiating repayment terms with your creditors.

Whichever option you choose, it should be one that suits your budget and lifestyle. Once you are on the path to a better financial state, you should do your best to keep it. It is easy to slip into debt in a short amount of time. Reducing debt can also mean reducing stress. Try it!