Everything in life has a professional service attached to it. Whether you want someone to mow your lawn, watch your kids, do your laundry, etc. If you want someone to do it, you’ll be able to find someone to complete the task. Now, are services for those that are lazy? Not at all. In fact, a majority of the time, it’s for those that don’t have the time or they are simply under-educated.
If you’re the type that doesn’t know much about credit repair, that’s fine because a lot of people out there don’t fall into this trap that often. It’s as if you’re having a baby, how often do you have one? Once you have one, the second time may be a little easier. I’m going to show you a few steps that you can take in order to get rid of your debt 100%.
Take action now and make NO excuses
You’re reading this post and you’re mostly likely in debt if you searched for this. One of the number one reasons that many people don’t get out of debt is because they don’t try. They feel they have no option but to file for bankruptcy. Don’t be one of those people. Debt isn’t hard to get out of!
Let’s analyze your debt first
The first thing I want you to do is tally up all of your debts not including your mortgage. Include everything from credit cards to student loans and add it all up. The next thing I want you to do is tally up how much you make each month or year after taxes, whatever is easier for you. This is what it should look like.
- GOOD DEBT – $40,000/year after taxes // $15,000 total in debt
- BAD DEBT — $22,000/year after taxes // $55,000 total in debt
As you can see, if you have more debt than you make in a year, you may either want to find other ways to make money or you may have to take the bankruptcy route. If you’re in the good debt category, there’s NO reason you shouldn’t get rid of your debt.
Write down each debt on a spreadsheet
Find out what kind of debt that you have. What I want you to do now when it comes to your debt is that you’re going to list the minimum payment each month, the amount you owe total and how much you bring in each month.
Here’s an example on what it should look like:
- Credit Card A: $25 min. month // $5,000 total
- Student Loan: $100 min. month // $14,000 total
- Car Loan: $225/month // $14,000 total
- Take home: $3,200 / month
This will give you a better idea on what can go where and how you can pay it off. Now, this situation is fairly small where you’ll owe $350. After all your expenses and that, you should have about $1,500 left over each month to pay off bills. This should be put toward your debt. Hopefully, you can see where I’m going with this. Always apply more than the minimum and it can be paid off quicker.
If money is tight, still pay the minimums
Money can be tight each month and I know that but if that’s the case, there’s a rule among all debt advisers that you should follow. Always pay the minimum no matter what you do. By doing this, you’ll be able to help your credit score. The best way to fight this debt is by paying the highest interest rate loan first and apply as much as possible while paying the minimums on everything else.
Remember, this is just the basics of credit repair. There’s so much you can do when it comes to fixing your credit. Read around our blog, do more research online and you shouldn’t have to hire that credit repair firm.
|
