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1. Make a Realistic Budget
Start by listing your necessities: housing, food utilities and so on. Prioritize and tally your monthly bills first according to fixed expenses such as mortgage, utilities, car note, etc. Then look at variable costs like your groceries, cell phone bills, entertainment, etc and see where you might be able to cut corners. If you have money left over then budget a modest amount for luxuries such as the occasional dinner out or tickets to a play. Set reasonable limits on these type categories but don’t feel compelled to slash them completely from your budget.
2. Ask for a Lower Credit Card Rate
Getting lower rates on your cards could save you hundreds of dollars. So take a few minutes TODAY to call your credit card company and ask for a lower rate. A recent survey by Synergistics Research Corp. showed that 75 percent of all consumers who requested a lower interest rate actually received it. If your credit card companyrefuses your request then consider transferring a high rate balance to a card with a lower rate. Go to cardweb.com for help. It ranks credit cards based on their rates and terms. 3. Create a rainy day fund for yourself
You’ll never be able to break this cycle if you don’t have funds set aside for small emergency type problems such as a flat tire or a leaky roof. With the cash you’ve saved from budgeting and reducing your credit card rates, start putting money aside each month so that if an emergency does arise, you don’t have to use your credit cards or take on another debt. 4. Pay a little extra
Pay a little extra to your creditors. Every time you pay a little more you reduce not only the principal amount but also the amount of interest you will pay over time. Consider this: If you only make the minimum payment on a debt say of $2000 which has an 18 percent interest rate, you wind up paying close to $9000 and it will take you over 30 years to retire the debt. However, if you paid just $10 more than the minimum payment you will save about $5600 and you’ll wipe out your debt in a few years rather than decades. 5. Just say NO to bad debt
Investments that create value (eg mortgages, student loans, business loans) are considered good debt. Purchasing disposable goods (items that lose value over time) is considered bad debt. Start saying NO when the friendly store clerks ask if you want to open a new charge to save 10 percent on your store purchases. Say NO to any of the unsolicited credit card offers you so frequently receive in the mail 6. Build better Credit
One way to build better credit without adding to your debt load is to demonstrate a good financial track record. You do this by paying other bills, like utilities and rent on time. 7. Start up your own business if at all possible
Rather than making someone else rich, start making your self rich. I have found many opportunities on the internet but one that I have found to be most profitable for most people is: a) a direct sales company that pays you 100% of the sale and b) companies that have a price point of less than $1000 to start. This is the only realistic chance you have to succeed. Companies or opportunities that cost more than $1000 are quite hard to sell no matter how good it sounds Eliminating debt, taking control of credit, creating savings, sticking to a budget and finding a business you can call your own will help you dig out of debt and increase your wealth. Follow this plan and you’ll be on your way to having zero debt and Financial Freedom! http://www.pegcanhelpme.info Peg Holland, owner and CEO of Paragon Enrichment Group, a consulting firm for home based internet businesses, has been involved with network marketing for nearly two years. Prior to that she had been employed at a large telecommunications company where she held managerial positions in the Business Planning Organization and various other departments. She holds an MBA from Roosevelt University. http://www.pegcanhelpme.info |
