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5 Tips that can help you get rid of debt in 2011

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By: Anonymous
on 20th Jul,2015

There is no point is denying the fact that debt can ruin marital relationships, lives, nations, companies, etc.
5 Tips that can help you get rid of debt in 2011


There is no point is denying the fact that debt can ruin marital relationships, lives, nations, companies, etc. Surely, you don't want that to happen in your life too. So, this year, make your financial resolution to lead a debt free life. Read through the article to know about 5 interesting tips that can help you repay debts in 2011.

Tips to get rid of debt in 2011

Go through the following lines to get an idea about 5 interesting tips that can help you get rid of debt in 2011.

1. Pay off your debt: The first task you have to accomplish after is to figure out your total debt amount. Check the amount you owe to the creditors and collection agencies and decide the order and mode of payment. Go through your credit reports to know the names and contact details of the persons to whom you owe money. You should make it your goal to pay off your highest priority debt first. Once you are over it, focus on repaying the second priority debt.

2. Check out the rates and negotiate: Are you paying around 30% interest rate on your credit card even after making all the payments on time? If yes, then check out the interest rates offered to the new customers by the credit card companies. If you find that you're paying much higher interest rates than the new customers, then re-negotiate with the card company to lower your rates.     

3. Get help of debt calculators: These calculators are quite useful. You can use debt calculators to compute your total debt amount and to make a comparative study of the money you can save by using different debt solutions. These calculators can also help you determine the time it will take to become debt free.

4. Double the minimum payments: It will take you around 20 years to get out of debt if you make only make minimum payments. So, always try to double your minimum payments on the highest priority debt. This will help you erase debts sooner.

5. Calculate your income: Calculate your net annual and monthly income. Check whether or not it is sufficient to make you debt free by the end of 2011. If you find that it is not enough to erase your debts within this year, then start searching for ways to increase your income. If you don't have time to do overtime or part-time jobs, then try to make money online. This will enable you make money at the comfort of your home. 

Last but not the least, try to make payments as per your budget. Cut down your non-essential expenses and prioritize on the necessary ones. Whenever you go for shopping with your family members and are tempted to purchase the latest video game, check whether or not your net salary can afford it. If you find out that a major portion of your net income towards to it, then don't buy it even if you are extremely tempted. 

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