 |
|
Mortgage Articles & Advice
|
Browse mortgage loans, check rates, and quickly compare payments.
Get great deals and fast, friendly service
at E-Loan, the #1 online lender.
Pick your best loan deal, then get approved in five minutes!
Click here to
Check Current Rates (opens
in new window) |
Debt Elimination Fast
Ephram Lucas
How would you like to be debt free in only a few years, including zero mortgage debts?! Sounds too good to be true? Well check out this easy debt elimination plan from www.nodebtever.com - the plan the Banks DON'T want you to know about! First off, you need to do a little groundwork. Those debts took some time to build, so getting rid of them involves a little concentration.
Get your last half year's bank records together.Ignoring taxes, bills already paid etc, mark every entry that could in theory be reduced. It will help if you group like for like stuff together (a spreadsheet is good for this) for example, clothes, entertainment, groceries etc. What you are looking for is a way to shave 10% or more off each of these items. Make a list of ideas for each category. This is easier than it might sound - for example, in the 'Groceries' section, make a note to buy unbranded Supermarket generic products, rather than the big brand high cost versions. The amount you think you can save by doing this is your 'war chest' against debt.
Once you have done this, prioritise the bills as follows:- divide the outstanding debt on each bill by the minimum amount you can pay off each month. The smallest resulting number is your target bill. What you are going to do is continue your normal monthly payments on everything EXCEPT the target. The debt target gets the usual payment PLUS the war chest. You want to POVERPAY the debt each month to break it as fast as possible. Do this each month until the number one bill is paid. Then you move on to debt number 2 - the next smallest result of dividing the bill amount by the minimum payment. This time, of course, you can 'accelerate' the process by applying not only the 'war chest' but also the standard payments you used to pay on target number 1.
You are probably beginning to get the idea! Research from www.nodebtever.com indicates that the average US citizen can pay down ALL their debts in as little as 6 years using this method!
The important things about this method are as follows:-
You want to pay off the debt which will clear first. This allows you to 'accelerate' the process, using each item's payments on the next in the chain as the method matures. You must resist any temptation to focus on the higher interest debts - that is not essential here. If you run into problems (emergency expenditure required, that sort of thing) you can suspend the plan for the minimum amount of time it takes you to deal with the emergency, but then you must resume immediately. Oh, and by the way, DO NOT try to use your retuirement 401(k) funds for this - fund it from income and windfalls only.
Related Pages
Home Improvement Loans
- Save big with home improvement loans that are tax deductible - Use an
equity loan, line of credit, or a cash-out refinancing.
Mortgage
Brokers - Shop these top lenders for comparison quotes.
Credit History
and Approval - How to get a free credit report - Quick fixes to qualify for a
better rate.
Down Payment
Leverage - Avoid PMI with a two-loan strategy. How to grow your equity faster.
Online
Lenders - Tips on evaluating online lenders and their offerings.
Refinance-
Tips on when refinancing is the right decision - How to avoid paying points and
other lender fees.
Home Loan Online
- Discover the best ways to get the lowest rates - Links for checking current rates.
Real
Estate Settlement Procedures - Your rights under the Real Estate
Settlement Procedures Act - What protections you are entitled to and what needs
to be disclosed to you.
Private Mortgage
Loans - When to use private mortgage loans as an alternative funding
resource - Qualifying for a private mortgage loan is based on the property
value, not your personal credit.
Loan Directory - Complete home loans directory for thousands of loan products, mortgage
companies, brokers, and lenders. Search our loan directory by keyword or by
category for complete listings of all things related to mortgages, home equity
loans, refinance, and more.
In The News
|
|
|
|
