Plan for prompt payment of debts.

If you are from so many people before they give you their salary and have it divided between expenditures and debt has long had and which still has not gotten out?

Then this strategy may be the solution as well as to help you pay faster, allowing you to feel calmer, will have the opportunity to save and invest because they do not. To carry out this plan, you need to be on time, be available and be consistent.

Ideally, start with the plan would be in addition to meeting their expenses and pay their debts, also depart 10% of their income to cover faster, but as often it can not then you can do the following:

1 .- Before carrying out the plan, take the time to:

a) review the expenditures it has made in the last six to eight months.

b) divide by categories, than for eduacación, home maintenance, home improvement, leisure, family expenses, travel expenses, car maintenance, etc..

c) Now bring those categories where you can save.

d) Discuss How much are you paying monthly interest on your debts?

e) What percentage of your income so you are bound to pay its debts?

f) Now knowing the amount you pay in debt and interests can get an idea of ​​how much you have to save, and just see that.

2 .- You must be willing to make some changes and be consistent, though this may be a little more effort and time, for example:

a) Bring lunch to work instead of eating in the street can save you $ 500.00 or more per month.

b) Instead of inviting your family to eat several weekends, the better plan and prepare food at home, with this option can save an additional $ 500.00 more per month.

c) If you can carpool with coworkers who live near his house, save on gas, maintenance, parking, or pay someone to watch her car. You can also opt to take public transport or if your work is not far to walk.

d) If you usually go out with his friends on weekends, arrange for the meeting either at home or the home of one of them can save another few dollars more.

Start with the plan:

1 .- In each of the debt you indicate how long it takes to pay them, the way you can tell is by dividing the total balance of credit over the monthly payment or the mandatory minimum.

For example, currently has the following debts:

Clothing should be $ 1500 .-, which will pay $ 250 every month for 6 months.

Credit card payment: $ 2000 with payment of $ 1000 per month for 2 months.

Has a claim for car $ 45, 000 and you'll be paying $ 3750 a month for 12 months.

Payment of the house is worth $ 260,000 by paying $ 2.167 per month for ten years (120meses).

2 .- Make a list and list debts starting with the one that takes less time to paid in full, until the last number of the list as the longer-term credit.

Based on the above example, the list would look like:

1 .- Payment of the card.

2 .- Payment of clothing.

3 .- Payment of the car.

4 .- Payment of the house.

On the other hand made some changes and managed to save $ 500 a month.

3 .- Now cover the minimum payment on every debt as it has been doing. As the No.1 debt according to your list, pay the minimum monthly payment which he did well to save, will do the same from month to month to pay off your debt No. 1.

Example: Debt No1 .- Payment Card $ 1000 +500 = 1500 and subtract $ 500 for the next month, but as you have been paying $ 1000 this debt and next month returns to save $ 500 then settled his debt No. 1 and you over $ 1000.

4 .- Continue paying each debt minimum, be sure to do a monthly except that now the debt # 2, you pay the minimum payment (say $ 250), more rapid plan of debt repayment ($ 500) plus minimum payment by your debt # 1 ($ 1000). Repeat every month so pay off their debt to No. 2.

In the above example for the second month the account will have been paid off No.1 and over $ 1000 and as it has failed to pay, the debt will be payable No.2 only $ 1250 which can easily cover 250 payment because he has +500 + 1000 the surplus savings of Ratios1.

5 .- Continue to cover the minimum payment on each debt. And now to the Debt # 3 will pay the minimum, your payment plan more rapid debt, plus the minimum payments by their debts No. 1 and No. 2. Repeat every month to pay off your debt # 3 and continue with the following.

6 .- Once covered "all" their debts, now have the opportunity to save both the 10% initially required to start your plan. Besides, thanks to their effort and perseverance, have managed to accumulate money that can be used to save and invest and get more benefits.

If you carry out this plan just remember not to despair and set as the No.1 debt that has a higher interest rate, the importance of this plan is to apply their resources to pay the debt with shorter maturity, such so slowly managed to pay all its debts.

So also keep in mind that if you have any financial emergency, stop the plan for a while and continue until you solve it starting from where it left off.