Thursday, November 26, 2009

Unburden those bills!

I received an email from a lady called "Jennifer Lohan" indicating that she like to share this article via my blog. I feel that its a good read and I hope to share this with you guys too.

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How to pay off bills is a common question that haunts the minds of almost everybody. Paying off your bills fast needs both effective planning and discipline. If you owe more than what you earn every month, then it is really something to worry about.

However, there is hope for you. You can slowly pay off all your bills by following some useful tips. You just need to remain patient and careful.

The following tips would help you get an idea about how to pay off bills without troubling your finances:

Step 1: Work out the total amount of your debt.
Using credit cards carelessly frequently keeps you out of touch with your finances. You would require a clear understanding of your financial condition if you wish to create a feasible plan to come out of debt quickly. Assemble all your bills (loans, credit cards and so on) and sum up the amounts due to work out how much debt you have.
Take a note of the minimum monthly payments, the interest rates and due dates for every bill. Talk to your creditors for bargaining reduced interest rates. Your debt burden is lowered by reduced interest rates and then it becomes simpler to pay off your bills soon.

Step 2: Create a repayment strategy.
If you owe money to numerous creditors, pick out the one with the minimum balance owed. You must try to pay them in the beginning. At the same time, you must continue making the minimum payments to all other creditors barring the one you've chosen for payoff.
While creating a repayment strategy, research your needs why you wish to pay off your debts soon. Usually, working on something with a particular goal would better your odds for success.

Step 3: Evaluate your income and expenditures.
Note down and analyze your income and expenditures cautiously to get the money you would require to make additional payments on your targeted debt. Search for areas where you can reduce your expenses. Cut off your vouchers, carry coffee and lunch from home, choose basic rather than premium cable and so on.
Seek opportunities to save and raise your income (selling items on eBay, carpool, delivery business or switching a pastime into an income-producing activity).

Step 4: Put all your money that you save towards your targeted debt.
If you can, make weekly or bi-weekly payments to lower your average daily balance. Finance charges are calculated on the basis of this balance. You can make this payment arrangement simply through adding your creditors to your online banking service. Once the money is available in your account, you only have to click and the online payment is made.
Just keep on doing this again and again till you get out of debt. Select the debt with the next lowest balance and utilize your funds (including the funds that you were using to pay down the debt with the lowest balance) for paying this bill.

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When I tried asking who she was, she replied:

Very nice of you too have checked my domain. Honestly, I would't care much to mention anything about myself but I would rather be glad to give all the credit to my friend Jason Holmes. We worked out the post together and I am from the United States of America . Singapore is a wonderful place to be in.

Author : Jason Holmes is one of the financial writers associated with the Debt Consolidation Care Community. With his in-depth knowledge and vast experience, he has made a profound impact through writing and advising on all debt issues and has presented useful tips on debt. His remarkable guidance and support has improved the community into a global hub for the debt related situations.

1 comment:

Anonymous said...

Consumerism is the cause of all these debts. Singapore is fast following the example of the US in this area. Walk into any shopping malls and you can see all those big screen TVs screaming out to you to buy them. All those expensive restaurants as they unite with the credit card companies and banks to rope you into their clutches.
There is an important role for the govt to mitigate such negative and excessive influences but sadly they seem to be doing the opposite in order to be the head of an affluent society based on statistics and headcounts and KPIs. All of us have a role to play in deciding the direction of our society and the quality of the leadership of this society. We have to make our voices heard instead of letting our conscience be drowned by the hype of the mass media. In short, what kind of society do we want our children to grow up in depends on the courage and actions we take now. We should not go into debt in the first place as prevention is better than cure. Why do we allow predators to cannibalise us and our children and then give them first aid?