The 7 absolute rules for debt management

The debt is equal to the negative wealth. If you want to be rich, not going into managing debt. It’s as simple as it seems, people forget this basic principle. Unfortunately, most people tend to take the easy way they want more, to move forward more - now - instead of waiting until they generate more revenue or create surplus . They have to turn around the richness of the equation so that their expenditure exceeds their income, resulting in negative wealth or debt.

7 Follow these simple rules and you will not have debt problems again:

1. Make a commitment to eliminate its debt. It takes three things to achieve something: passion, motivation and accountability. First create a passion for you imagine that financially totally free. Secondly, to create the motivation for the establishment of a “debt” plan. And finally, establish responsibility by adopting an absolute responsibility to all its debts - and we also know that can change that!

2. Log on a bus: “The credit is the game. Debt is the hangover.” Learning to stop buying things that can not afford.

3. Learning to live in cash. Its easier than you think and more fun! If you fail the temptation to go shopping with credit cards, stop using. If you absolutely must have a credit card, only one - with a maximum of $ 1000.

4. If you’re ready to manage the use of their credit cards, to begin with just one card with a limit of only $ 1000 and pay the balance each month.

5. Initially, the increase in fixed costs by 55% or 60% of its net revenue to cover the additional payments to reduce debt. Under his discretion and accordingly the allocation variable, but not reduce their savings.

6. Take control of your debt. If the total amount of its fixed costs, exceeds 60%, in agreement with its creditors, if possible, reduce the reimbursement to integrate within 60% of their net income. No promise of payment or promise more than they can really afford. Sell all major issues that do not need, which are costs money. Arrange to consolidate their debts into a larger loan, if possible.

7. The payment of debt credit card first. This is usually the most expensive with interest rates of up to 20% per annum. Pay your debts in order of cost. More interest rate, debt more expensive.

Today more than ever, we have the ability to earn a lot of money. There are more income now than ever before, but the distribution of wealth remains more or less the same. The more we try to live above our means, buy things we can not afford, rather than digging trenches littered with our debt help articles. The only way out is financially mature and begin to take responsibility for our actions.

The debt represents all of its loans and money owed to other parties. This May include your mortgage, auto loans, financing loans, personal loans, personal debts, other bank loans and credit cards. The best way to ensure their debt is not spiral out of control, it only has a debt. If you have several mortgages, including a house, your bank May consolidate all loans under a mortgage, provided there is enough equity in your home. If you do not have a mortgage, May you consider consolidating all your credit cards and personal loans in a loan. If you do not have a personal loan or mortgage, but several credit cards - reduce the number of cards to one. In this way, you win more control over their debt, be better able to pay and not be tempted to increase their indebtedness.

Manage your credit cards is critical in managing and containing its debt. The problem with using credit cards is an infinite sense that we give. There is no limit to what you can buy more or less what we think. Unless you add up all receipt and keep a constant match, you can easily get out of control. That $ 15, $ 25, all of this. And soon our limit. Credit cards it is too easy to fall into bad habits, which will eventually lead to waste and extravagance. Yes, I have this new dress. No money? Whatever, just put it on credit. Not thinking now. It was all the work later. However, later they will come, as your credit card.

Remember that the difficulties they experience now May to pay its debt is only in the short term. Time passes quickly and, ultimately, you are grateful. The discipline exerted now means additional dollars to the bank later.