Saturday, June 23, 2007

Spirit & Money : A Debt Diet

Spirit & Money : A Debt Diet

OK everyone, time to bare those legs in shorts for the summer, and time to bare all when it comes to your debt.

Make a list of all your debts. Go through everything and be sure to include those student loans, the car payment and any outstanding medical bills, and especially those high interest credit cards.
List the amounts and what their interest rate is. If you don't know the interest rate, find out! That's rule #1. Know what its costing you to borrow their money in the form of credit.
List the debt starting with the lowest amount all the way to the highest amount. Why should you make the lowest debt first? Because like a food diet we like to see some quick results, so paying off the smaller debts first will give you a sense of satisfaction quicker. So the small accomplishments will give you enough courage and strength to tackle the really big ones.
Next too each amount put the interest rate your paying. Any credit cards that have a interest rate higher then 20% you may want to consider closing. Some companies will lower your rate if you call and ask them. Believe it or not! So try that and see if they value your business.

Post this list somewhere where you see it. Update it month to month. Watch those small amounts you spend throughout the day and lets get serious about getting our debt slimmed down!!

Share your comments, thoughts, experiences in the posted comment below. Lets support each other in our journey.

Good Luck!

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