Clear Debt

Yes, you can clear debt with this simple saving strategy.  If you do this for just one month, and it will only take you approximately two minutes each day to complete, then at the end of the month you will know exactly where all your money has gone.

Also and, most  importantly, you will see how you can save each month from now on.

Knowing this will enable you to clear debt and go back to enjoying your life without the constant worry of your debt problems.

Clear Debt SSS Set-up

Right, let’s get started with this amazing simple plan,

At the beginning of each week prepare a sheet of lined paper for a daily account of what you spend.

Divide the sheet of paper into 5 columns as below:

DATE     –     ITEM     –     NEED     -     COMFORT     –     LUXURY

Write down absolutely everything that you spend each day because it is the only way that you will be able to determine exactly how you are spending your money.

If, it’s a need, put it in the NEED column.
If it’s a comfort, put it in the COMFORT column
If it’s a luxury put it in the LUXURY column.

You have to be completely honest with yourself as to which column you should put the expense in, in order for this to work.

By the end of a month you will most likely find that the COMFORT and LUXURY columns have many unnecessary items listed and therefore wasted money which could have been used towards helping you become debt free.

By completing this very simple exercise, you’ll be on the road of taking control of your outgoings and on the road to clear debt.  You’ll also be starting a savings plan within no time.

Thoughts to clear debt

Warning! There is a saying -
‘Look after the pennies and the pounds will look after themselves’.

I prefer this one …

‘Penny wise but pound foolish’

Too many people scrimp over the pennies. They then feel that they have ‘saved’ and feel justified to buy something else they wanted, no doubt more expensive, because of saving this way.

They are actually wasting pounds instead!

We are all capable of doing this but it definitely not the way to clear debt.

Debt Management Companies

Debt management companies are geared to helping you with your money problems if you are in deep financial debts.  The fact is, creating a workable plan to reduce debt is essential in order to eventually become debt free.

Once you determine that you are going to work on reducing your debt and getting your finances in order, you will need to decide if you will organize and implement a debt plan entirely on your own, or if you will utilize the support which you would receive by employing one of the debt management companies which  are within your locality.

Debt Management Companies

• Debt companies negotiate with all of the creditors to whom you owe money, on your behalf.
• They do this to reduce the interest rates that are attached to the debt.
• They also work with the creditors to extend the payment terms.

This restructuring of your finances enables you to meet your financial obligations each month and not accrue more debt due to missed payments, which results in the added cost of late fees.

A debt management company will look at your unique financial situation and create a debt consolidation plan to help you to meet the negotiated terms that have been established. The plan will enable you to make one payment that disperses to all of your creditors.  This company, for its part, will earn its revenue from the fees that are paid each month.

Debt management companies can provide loans.

Yes! they will offer you a loan.  This loan will allow you to make one monthly payment to the company and thereby closing out all of the other debts. It is essential that you determine the long-term consequences of this.

In some cases, the loan will be at a higher interest rate than what you are currently paying. Be sure to get all of the information before agreeing to this approach.

The Reality – debt management companies can help you become debt free

Each debtor will require a different financial structure and require a specific customized debt management plan in order to achieve success. Success is possible with your focus and determination to get out of debt.  You may have to shop around to find a debt management company to ensure that you feel comfortable dealing with them, after all, you want to be completely confident that you discuss all your debt problems with ease and without embarrassment.

Always remember that they are going to gain from your business and therefore it is to their advantage to make sure that you understand fully what is entailed with all the processes they will be putting forward.  All reputable debt management companies should treat your financial situation as unique.

Read more information on how to get out of debt with a debt management plan, before approaching any of the debt management companies