Top Ten Ways Eliminate Debt Fast
02/02/2008 by admin.
This is a list of the Top ten ways to eliminate debt fast!
1. Build a healthy credit profile
Do you have credit cards? I know the majority of us do. Well, the first thing you need to do is know how to manage them. How you manage them affects your creditworthiness. Try and use them sparingly and be sensitive to the terms of the payment agreements you’ve made. If the cut off point for making a payment to your credit card company is out of sync. Simply ask them alter your billing cycle or adjust it. They may or may not do this. The fact is, you won’t know until you ask.
2. Notify creditors of a change of address
So many people fall into this trap. They basically move house and then think by some way of magic the creditor will know where they’ve moved too. Unfortunately, they won’t. What you’re dealing with is a computer that sends out pre-written and standard letters. It runs in a cycle, sort of like an auto responder. It’s not there to think. It’s basically there to send documents and info to intended recipient. In the days of the super information highway, you can simply and easily do this online if you’ve got a computer.
3. Set up A Direct Debit
The majority of companies, whether they’re gas or electric companies etc will ask you to pay by direct debit. The strange thing is this particular service actually discriminates against the poor. Why? Well most of these companies actually offer a form of discount if you pay by direct debit. Most of the time it’s the poor that don’t pay their bills in this way. Thus they end up paying more. So, if you have a bank account, try to pay by direct debit. Even if it’s not a lot, the company you’re dealing with would prefer it and you’ll also get a discount, saving you money in the long run.
4. Manage your debts—reduce them too!
“Where did all my money go?” How many times have you said that and wondered if a thief had tip toed into your bank account overnight and fleeced your money. The best thing to do is budget your money. Actually list on a spreadsheet your incomings and outgoings. If you don’t have a spreadsheet or you don’t know how to use them, don’t worry. At the bottom of this article there’s a link that will take you to a page that has already set one up and which you can use to start budgeting your finances. Start the list out with your fixed income and then on the next list write down your expenses. Obviously, when you subtract the two you’ll get the amount of money that you have left at the end of the month.
5. Think before you purchase.
Seems pretty simple doesn’t it. Well, so many people make this very common mistake. The basic principle of getting yourself out of debt is to stop spending. Write a list of the items you need for your household BEFORE you go to the supermarket. When you’re in the store ignore the buy one get one free offers, buy tow for three etc and actually just buy what you need. You’ll be surprised how much smaller your shopping bill is at the end. You see the trick the supermarkets play is to get you to purchase more by laying on these unbeatable, un-missable, truly fantastic last minute offers with a deadline. You then go and purchase the two for three boxes of jam tarts, buy one get one free bottle of wine. You don’t need them and most of the time they’ll probably just sit around in your cupboard waiting for next avalanche of food items to join them.
6. This point will contradict the first one a little, but you’ll see that it make perfect sense. If an item that you purchase regularly is on offer, then buying them when they are on offer is absolutely, i.e. Diapers, coffee, sugar etc. These essential items can be bought and saves you money in the long run. It’s the items you don’t need that you have to stay well clear from!
7. Shop at your MAIN convenience store.
Don’t worry; this isn’t ad for your main store. How many of you get those late night cravings and then somehow find your way down to your local convenience store. Did you know that these stores regularly mark their items up anywhere between 10-50%? If you’ve got one nearby, shop at your main supermarket and if you’re even luckier it’ll be open 24 hrs. This tip alone will save you hundreds of dollars a month without even thinking about it. If they’re not open 24 hrs. Try purchasing a small quantity of these items in your next weekly or monthly shop instead of running to the local convenience store to satisfy your cravings every time. This will keep you on tract eliminate debt fast.
8. Find out why your credit application has been denied
You may have been denied credit because of information supplied by a credit bureau. Did you know that federal law actually requires the creditor to give you the name of the bureau that supplied the information? Simply contact that credit bureau within 60 days of receiving the denial, and obtain a free copy of your credit report. Every country has their own bureau. Do a check online to find your local one. There maybe errors on your report. If there are, you’re entitled to have it investigated by the bureau free of charge.
9. Ask for a Discount
This is an old trick going back to Roman times. “A penny saved is a penny earned”. Each and every dollar you save is an extra one in your pocket. I know that some people will have problems doing this, and that’s absolutely fine. A simple technique that can be used is basically asking the vendor what their best price is. That’s it. That simple little question has saved people thousands. All you’re doing is asking if there’s a better price for the item. Now, 6 times out of the ten times you try this you may get knocked back. I guarantee you, the more times you ask this question the more effective it will become. Believe it or not most local stores expect it.
10. The last point is simple. Keep try all of the techniques and tips over and over again. If you fall out of routine, don’t worry. Simply get back on track and try again. Whether you save $50 dollars this month and then save $75 dollars three months later doesn’t matter. The fact is, you’d have saved valuable dollars to help pay those essential bills. Try it.
Want more interesting tips, facts and different ways to eliminate debt fast, check out http://www.debthelpmagic.com/Eliminate_Debt.html. The article has been written Desmond Dreckett of http://howtostartyourownbusinesstoday.com and he has included on his website a free budget calculator for you to download absolutely free!
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