Pay off your debts forever!

These days we buy all luxurious gifts and different things that are not life necessary for survival. At the beginning of the next year, many people will realize that they are in a financial crisis, because of all expenditure incurred by the New year time. Of course, this is not the only reason why people have debts. The company is commonly believed that the more you have, the more you are. We are totally neglecting the feelings of personal happiness, which is not linked with money. Indeed, it is difficult to be happy if we are threaten to shut down electricity, comes the time when we do not know what we will eat. Here I will describe what is my openion.

1.)Those with both debts and savings are seriously overspending. The solution is simple; pay the debts off before you save, maybe even including your mortgage. And forget the old-style ‘must have an emergency savings fund' logic, getting rid of debts beats that too.

2.) Sadly many people have much more debt than savings. So even if you use all your cash to pay them off, you'll still have debts left. Therefore it's important that you prioritise using your savings to get rid of the most expensive debts.

3.) Make a budget. For this to work, you ideally need to track all of your income and spending for a full one month period. Two months is better, but this can be a chore, so getting one accurate month behind you will help. Until you have completed this, it is almost impossible to offer any sort of debt management advice. How can you help point people in the right direction if neither you or they can decide where they are?

4.) Look for a second job. If all you can find is part-time work for one evening each week at which you earn, say $40, that is actually $2,000 per year gross. That may be enough to repay a small loan. Use the money to overpay and clear a debt. That will free more of your budget to repay another loan. If you can keep this up for perhaps three years, you will be substantially better off financially. There is a second point to this advice. If you are working harder, you have less hours of 'free time' in which you need to be entertained. That means that you spend slightly less whilst earning slightly more, a double 'whammy' for your debts.

Best advice: Go to Debt Management Plans and tell them what you need. They will help you organise your plans to pay your debts.

And thanks again to my sponsor Debt Management Assistance.