Sunday, June 25, 2017

Get Out of Debt!

Many people have never been taught how to manage their money. They’re crippled with debt and don’t know what to do. A recent survey revealed 44% of Americans don’t have enough money to pay an unexpected $400 expense. Another survey showed 75 percent of Americans live paycheck to paycheck. Americans have now accumulated over a trillion dollars credit card debt, over a trillion dollars student loan debt, and more than a trillion dollars car loan debt.

If you’re in trouble with debt, you’ll never get out of it unless you follow a plan. Write a budget and stick to it. To be debt-free, you’ll need to increase your income (if possible), reduce your expenses, and pay extra on the principal.
1. Increase your income. Perhaps you can get a part-time job. Sell things you don’t need and use that money to pay extra on your debt. Use your income tax refund to pay off debt or save it for unexpected expenses.

2. Reduce your expenses. Quit dining at restaurants and eat at home. Downgrade your cell phone plan. Most people don’t need a smart phone but can use a flip phone instead. Drop cable or satellite TV. You can buy an antenna and still pick up many stations free. Drive a reliable used car instead of a new one. I recently sold my 20-year-old car and upgraded to a “like new” 2008 Camry with only 92,000 miles.

3. Pay extra on the principal. With the money you’ve saved by reducing your expenses, pay more than the minimum amount by adding the extra money to the principal on the debt. Get rid of your Payday Loans first because you’re paying up to 400% interest! After you pay that off, put extra money on your credit card debt, with is typically 15% or more. Again, you must pay more than your minimum payment. When that debt is eliminated, pay off your car and home mortgage ( Read 10 Secrets to Life’s Biggest Challenges pp.131-151).
CLICK HERE for more info on How to Get Out of Debt
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Making Life Count Ministries
P.O. Box 680174
Prattville, Alabama 36068-0174  Twitter: @KentCrockett