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Getting A Plan For Getting Out Of Debt September 29, 2011

Posted by CredZoo - Tame Your Credit in New Credit Information, Tips For Good Credit.
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Once your credit has been damaged, it takes a plan of action to get it back on track again. Two important steps: 1. Enlisting the help of a professional NACSO Certified credit restoration service like CredZoo and 2. Get a plan for paying down your personal debt. So, here’s some help with both! First, contact CredZoo for your FREE Credit Consultation If you’re serious about discussing ways you can improve your credit score, we’re here to help. Our credit specialists are experienced, friendly, and will help you determine the best course of action to achieve your goals — all at no obligation or cost to you. Call us for your free consultation at 888-881-5333.

Second, order your debts from highest interest rate to lowest. You may find credit cards at the top of the list. It’s typical to see interest rates from 10% to 20% or more. Credit cards offered by stores often have the highest interest rates, so you might find these at the very top. Watch out for promotional rates ending, which they may do on the date promised when you enrolled, or earlier. Order your list from the highest interest rate (after tax) to the lowest. Pay the minimum to all debts every month. If you’re writing down your list, or using a spreadsheet like Excel, add a column next to each debt to list its minimum monthly payment. This is the amount you will pay towards each debt, except for the one account listed at the top of the list. To your debt with the highest interest, send all extra available cash.

Since it’s unlikely that you can earn more in savings than you can “earn” (reclaim) by paying off your debt, all your unused income after paying expenses (necessary and discretionary as you see fit) should be dedicated towards the debt account with the highest interest rate. Sounds simple, right? But sticking to it can be tricky. Make sure to repeat this each month – and keep yourself motivated to stay on the right track. Here’s a little interactive tool to calculate when you’ll be debt free: Getting Out Of Debt / Debt Reduction Calculator

 

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