If you are one of the people who have debts now-a-days, you are not alone in the battle. There are surveys that say the average person carries with him about a number of hundred dollars on his credit cards, and most of the present-day people now have loans of all sorts: mortgage, car, and even student loans. And at this present state of our economy, the first thing that should be accomplished is paying off the credit cards, but unfortunately, credit cards have interests up to the neck that paying everything off seems like a close-to-being impossible thing.

Without further ado, everyone wants nothing more that for their monthly payments to be tremendously lowered, if not totally eradicated. So here is a small list on how you can try to be debt-free quicker and faster.

It would greatly help you if you will do things to drop your rate. It is a fact that an average credit card has an interest of about 14%. And fortunately enough, many credit cards are offering features that include special and low-rate introductory premiums, 0% for the first six months, for instance. It is wise to transfer your existing balance to a low-rate card instead, so that more and more opportunities in order for you to pay on a monthly basis will be applied to your principal rather than the interest only, and this in turn will drop your balance in a fast way. It would always be smart to ask around if your current credit card company is not offering you one. Paying only half of the total balance you have, or even just the minimum amount, will mean that it will take you a longer time, years to pay your debt especially so if you have a 0% rate in interest. So, do everything to boost your payment to a degree that will allow you to settle your debts faster. Paying your debts more than the minimum amount will your best defense in paying off your balance in a short time. For instance, sending in an extra amount, say $200 or more, will help you pay the entire amount in just several months instead of years. It would also help you if you will consider and look for a debt negotiator or consolidator, especially if you suddenly find yourself needing extra help than necessary. The negotiator or consolidator you will find can help you in negotiating with the credit card companies and then eventually ask for a new debt amount, if not for a lower interest rate. If the negotiator will be successful enough, he can help you cut down the total amount you owe to some 80% or even 60% of the original amount. This will ultimately mean that you will be able to settle things faster.

Once you have accomplished these first three things that can help you, it would also be easier to be conscious enough so as to stay debt-free for the remaining years. As much as possible, do not use your credit cards until you know to yourself that you can easily pay off the monthly balance. Daily expenses can be met using cash or debit and then reserve the credit cards for great purchases like electronics or appliances.

Taking one step at a time, no matter how small they are, can also total to something great in the future. Anyway, nobody makes a huge leap in his first time to attempt to walk, right? We all have to start somewhere usually small at first, and then the big steps will follow next. What is important is that you know how you are using resources properly so that you will not be in-debt forever.

Many people struggle to pay off debts every month. This can range from buying a house that is too expensive to credit card debt that built up. This article will give you 5 solid tips on staying debt free.

The first tip for staying debt free is budgeting. You should have a set budget every month for spending and where you will spend your money. Most families do not have a budget so they do not know where they spend their money. By using a budget, you will be able to curb any bad spending habits that may start and you can save money every month. A budget is your financial map so that you can remain debt free. Without budgeting, none of the other tips mentioned in this article will be as effective.

The second tip is to develop a plan to pay down debt. The average household in America has roughly over eight thousand dollars in credit card debt. Most households only make the minimum payment. If you owe debt, think about ways to pay it down quickly. You can use your budget to identify where you can cut spending in some areas to redirect monies towards your debt. Pay above the minimum payment and start first with your highest interest rate debt and work backwards.

The third tip is to start saving every month. If you lose your job right now, it is likely you will not find one immediately due to the state of the economy. Save at least eight months worth of living expenses. This will help you to not have to rely on credit cards if your source of income is eliminated. This can help save you money if you do end up losing your job because you will not rely on your credit cards.

The fourth tip is to use bonuses or other money you were not expecting as retirement savings or to pay down debt. You can use some money to have fun but paying down debt will allow you to save interest you would have had to pay and you can be debt free in a quicker time period.

The fifth tip is related to your car. Have you paid off your car? If you have, congratulations! If not, pay it off. Once your car is paid off, set aside a car payment every month in your savings account. Depending upon how long your car lasts after you pay it off, the money that you saved from setting aside the monthly car payment can translate into a substantial down payment or paying for the whole car in cash. This will save you money by reducing or eliminating the amount of interest that you have to pay on a future car loan.

These five tips will help to save you money and remain debt free. Budgeting has to be the first key. Without a solid budget, you cannot be as financial savvy and responsible as you would like to be so you can stay debt free. A great side benefit is that people who are debt free report being happier and in more control because their finances are not controlling them.

Credit Insurance Plans have been put into a complete ban by IRDA as it was being practiced rampantly by some non-life insurers. Credit Insurance is a kind of cover or guarantee to the lender against payment default by borrowers. IRDA has ordered all general insurers to stop selling these plans until any further detailed notice is issued by them in this regard.

Since only a smallish number of loans carry credit risk protection, the decision is unlikely to increase the total credit risk of banks. The Authority has also asked for details of total exposure of the insurer under the credit insurance plans issued by them to the banks offering credit facility to the debtors. The credit insurance that is being marketed by the several insurers is better termed as credit default insurance. It’s basically a security cover which provides protection to the borrower of a loan against the inability to repay the loan.

A recent case of such a cover which resulted in a claim is that of the state-owned insurer Oriental Insurance Company selling such a cover to Paramount Airlines. The insurer provided cover to the airline’s lenders from different branches to the tune of INR 200 crores. Several state-owned lenders have an exposure to the company, which along with other troubled airlines are trying to restructure it’s debt.

Recently, some scam also came into limelight wherein unscrupulous brokers were conniving with borrowers. The broker armed with a letter from a international reinsurer saying it is willing to provide reinsurance underwriting support, along with the borrower would approach an insurance company for credit insurance cover. Reinsurance support is similar to loan syndication where deep-pocketed underwriters share the credit risk. When there used to be a claim, the insurance company discovered there were problems with the technicalities in the contract which allowed the international reinsurer to escape liability and the local insurer was left with the claim.

When compared, credit insurance is quite similar to credit default swaps which earlier brought down the international insurer AIG.

What Is Mortgage Life Insurance?

If you have a mortgage and are a home owner, you have most likely heard the pitch for mortgage life insurance. It typically comes in an envelope from your lender and might include a letter from your lender suggesting that you buy a policy.

It is important to realize though, that the insurance itself is sold by insurance companies. Even though it is called “mortgage insurance,” it is in reality decreasing term life insurance that will pay off your mortgage if you pass away.

How Are Premium Payments Planned?

Mortgage life insurance is a decreasing term policy. The policy starts with a death benefit that is equivalent to your existing mortgage balance. The death benefit reduces at the same pace as your mortgage balance. The premium payments never vary but may cease before the loan payment. Your lender may agree to include the premium payments to your monthly mortgage expense.

Is Mortgage Life Insurance Identical to Private Mortgage Insurance (PMI)?

No-mortgage life insurance is commonly befuddled with Private Mortgage Insurance (PMI), but they have little to do with one another. You purchase mortgage life insurance willingly to shelter your family from having to pay the mortgage.

Mortgage lenders require you to buy PMI to shield them (the lenders) from the probability that you will default on the mortgage.

Insurance Tip: Request for insurance agents to estimate their best price for a decreasing term policy in the same amount, period, and interest rate before buying from a sales pitch sent by your mortgage company.

What Is Credit Life Insurance And Credit Disability Insurance?

When financing some kinds of big items – automobile, furniture, audio equipment – there is a good possibility you will be presented with credit life and credit disability insurance. Credit life guarantees to pay your balance if you die. Credit disability will pay your payments if you become disabled and not capable of working.

Credit life is a decreasing term policy. The insurance premiums are typically added into the loan contract. This type of insurance is constantly voluntary and it can be rather costly. Your lender cannot require you to purchase credit life or credit disability insurance.

Although they may have some comparable elements, credit life and credit disability insurance are not the same thing as mortgage life insurance.
What Is A Life Insurance Rider?

A “rider” is something that is supplementary to the basic policy. Riders can be used to either add benefits to the policy or limit benefits previously in the policy. Common riders are as follows:

Accidental death: Double indemnity is an additional name for this rider. It means that the benefits paid by your policy will be two times the face sum of the policy if you die in an calamity.

Approximately twenty percent of policyholders perish in accidents.

The price for an accidental death rider is usually reasonably priced.

Some critics bring up the point that how the policyholder dies has nothing to do with how much money your survivors will need.

Waiver of premium: This rider allows you to cease paying premiums whenever you happen to become disabled and unable to continue working.

It is crucial to comprehend how the rider defines “disabled.” For example, the meaning could be very restrictive and require you to be so extremely disabled that you cannot do any sort of work whatsoever.

A disability policy can also defend you from monetary hardship due to a disability. Depending on the kind of policy you acquire, it could supply capital to pay for all of your living expenditures, not solely your life insurance premium.

Mortgage protection: This rider fundamentally attaches a mortgage life policy to your chief policy.

Other insured: You can insert life benefits for your spouse or children. They may have varying coverage amounts and be subject to medical underwriting, however.

Guaranteed insurability: This rider would characteristically be added to a whole life or universal life insurance policy.

It gives you the right to procure a new policy or amplify the maximum on your existing policy without having to pass another medical assessment.

The rider will most likely indicate how much you can add and at what time you can do it.

The guarantee may not persist after you reach your mid to late forties.

Accelerated death benefit: This permits you use some portion of your death benefit when you have an incurable sickness. Some policies will insert this rider without causing your premium to enlarge.

Insurance Tip: If your agent automatically includes riders when calculating your premium, request the agent to value each rider independently. You can then choose whether you think the additional benefit any rider provides is worth the added rate.

Your credit score will have a direct impact not only on your ability to obtain car insurance but also on the amount of your monthly premium. Nowadays, most insurance companies are using a numerical formula called an insurance credit score. This score is calculated using a set formula that takes your credit score and other factors, shakes them up and shoots out an insurance score.

According to a variety of actuarial studies, this insurance score is a reflection of how likely you are to be involved in an accident. Your insurance premiums are then set accordingly. The higher your insurance credit score, the lower your insurance premiums, and vice-versa. This formula is very similar to the formula used by banks when processing loans or credit card applications.

Why The New Policy?

Insurance companies, as with all companies that profit from risk taking ventures, must try to manage that risk to the best of their ability. They have sought and found a reliable method of assessing a driver’s potential for filing claims. A study conducted by an actuarial consulting firm found that there is a 99% correlation between insurance credit scores and insurance claims filed. Utilizing insurance credit scores to make coverage and rate premium decisions, assists insurance companies in setting rates as close as possible to the amount of risk that they incur by insuring any particular driver.

Also, it is a fact that MVR reports are notorious for omitting driving citations/tickets that were resolved favorably in court. Therefore, they are not accurate representations of a person’s driving record. The insurance credit score is now the indicator of a persons’ claim filing potential.

How Is The Insurance Score Calculated?

Your insurance credit score is calculated using a formula similar to that utilized by banks when they extend credit. Insurance scores are developed by the Fair Isaacs Company. They use between fifteen and thirty different credit characteristics. Each characteristic is assigned a different weight. This calculation assigns each file a score between 100-999, the lower the score, the greater the risk. Usually credit activity in prior twelve months is given the most weight.

Integral portions of the fifteen to thirty characteristics are your payment history, debts, length of credit history, new accounts, and balance of accounts as reflected on your credit report. It is illegal to use personal data, such as a person’s ethnic group, religion, gender, family or marital status, handicaps, nationality, age, address or income when calculating their insurance credit score.

What If I Have An Excellent Driving Record But A Few Late Payments On Credit Accounts, Will I Pay Higher Premiums?

The not so pleasant answer to this question is yes. If you’ve never been in a car accident, yet have a blemished credit record, it is highly likely that your insurance premiums will be higher than a driver that has a blemished driving record, yet has excellent credit. This is because underwriters feel that your credit score is an indicator of your fiscal responsibility, and that if you are fiscally responsible you are a more responsible driver. Responsible driver’s are lower risks and file fewer claims, costing insurance companies less money, and are therefore rewarded with lower premiums.

What If I Don’t Have Any Credit History?

Your insurance file will be termed as a “no-hitter” or a “thin” file. Federal regulations require that your lack of credit not be counted against your application for auto insurance. The insurance company must treat your file as a neutral or average risk when making an underwriting decision.

I Have Bad Credit And Need Auto Insurance, What Should I Do?

There is a market for all types of credit across all types of industries. The insurance industry is no different. You will more than likely have to pay higher to substantially higher rates, but in most cases you should be able to obtain insurance. No matter what, make sure you shop around to see who offers the best rate for your financial situation.

I Have Good Credit, How Do I Make Sure That I Am Getting The Best Rate For My Score?

Auto insurers do have different risk scoring calculations depending on which characteristics provided by Fair Isaacs they use. So it is possible that different companies will assign you different insurance risk scores. If you have average to good credit, forum shopping is a recommended choice of action. Insurance inquiries by legal mandate will not affect your credit beacon score.

What Else Should I Know?

In certain states it is possible to review current customers’ insurance credit score and adjust their rates accordingly. This of course is of importance if you are a resident of a state that allows this practice.

Hawaii, New Jersey, California and Massachusetts have passed regulations that prohibit auto insurance companies from calculating their customers’ premiums based on their credit score.

If an insurance company utilizes your credit information for their underwriting and ratemaking process, they have to inform you. Also, if for any reason they deny your application, you are entitled to one of those, “Hey we denied you but you can get your free credit report as a consolation prize” letters.

Finally, be aware that the underwriting department of an insurance company cannot deny your application or raise your rates on the basis of any of the following: absence of credit history; number of credit inquiries; purchase of a vehicle or a house that increases the amount of debt you have; use of a particular type of credit card, debit card or charge card (such as dept. store or gas credit card)

Good credit is essential to ensuring that you are receiving the best auto insurance rates possible. The days of insurance rates being primarily based upon your driving record are over. Now, the basis is your responsibility with your finances.

No matter what you credit score is – be sure that you shop around and compare car insurance rates from multiple companies once every 6 months in order to find the best deal.

Owning your own business is the American dream. You can be your own boss and do the work you always wanted to do. So why do some many people believe that their dream should become a nightmare? They may not profess it, but when they start their business with a loan, they have given someone else the ability to dictate their life – the bank.

Debt is a common American practice, so we rarely question the fact that we should take out a loan to achieve our dreams. We want to start big and we want to start now. Like the newly married couples who want to own homes just like mom and dad, we don’t realize that the best thing to do is move up slowly. In both cases, we take out a larger loan than we can afford, and wind up working to pay the bank.

You don’t want a loan for a failing business, and the statistics are already stacked against the small business person. Do you want to open a business that fails and wind up paying for it long after you’ve closed your doors? Of course not!

So how do you start your own business without a loan? Just like you start out in life – small. If you already have a full time job, develop a way to start your business out part time. Find out what people want, what works the best for you. This also gives you an income to eat off of (which may be more important to your family than to you, but I promise, it’s important). Once you are making enough money to live off your business from the part-time work, shift to full-time. Yes, this is slow and involves an insane number of hours, but isn’t it worth it to keep from hating and dreading the business you love?

Once you have the business running smoothly, keep it running smoothly by paying cash and continuing to avoid debt. Rent equipment by the job until you’ve saved up enough to purchase it. Keep your costs at a minimum by not buying things you don’t need. Go slowly and have patience, and you will be more likely to be around several years later.

Patience is difficult for Americans to acquire, especially the small business owner who gets excited and wants to move now. But patience will make your business more likely to grow and prosper, and will decrease your odds of paying on a debt for ten years and kicking yourself each month when you write the bank a check.

Debt is something that a large percentage of people will face at some point throughout their lives.  However, when it comes to taking action against accumulating debt, there are many solutions to become debt free.  There are many forms of debt you might face, including student loans, home loans, credit cards, or car loans.  All of these are large purchases that you must pay off over time.  As a result, things can come up or you might get behind on your payments and find yourself in debt.  There are two types of debt: secured and unsecured.  Secured debt is something that has some form of collateral against it, essentially backing up the debt.  Unsecured debt has no collateral against it.  Understanding your debt and researching debt free solutions is the key to getting out of debt.

In almost all debt free solutions, you need to start with creating a good budget.  If you can budget your money so that you manage it more effectively, you will be on a path to lowering your debt.  To start, list all of your income from all sources.  Then, you can list your expenses, both fixed and variable.  Fixed expenses would be something that you pay a certain amount towards each month, such as a car payment.  Variable expenses are different each month and would be something like an entertainment expenses.  The main goal for your budget is to make sure you have enough funds to cover the bare minimum which would include health care, food, housing, education, and insurance. 

Debt free solutions don’t stop with budgeting.  If you’re having trouble making payments, you can contact your creditors to see if you can work out a payment plan that is more suitable to your particular situation.  Just let them know you’re having difficulty making payments and want to avoid legal trouble.  You can also seek the assistance of credit counseling and debt management to help you get out of debt.

Eventually, after much personal sacrifice you’ll reach the day when you’re completely and utterly debt free. You don’t owe anything to anyone. You don’t have to earn money to support your debts, just yourself.

I hope that sounds sweet to your ears. Because that’s one of the few thoughts that will help you to survive the hard times on your journey to the land of the debt free. But to provide you with some additional motivation, I want to give you something to think about.

Two recent surveys asked people the following questions:

Question One: How much extra income would you need to feel well-off?

Now before I reveal what the results were, I want you to get some paper and write down your own figure;

I would feel well-off with an extra……….income each year.

Now for the second question!

Question Two: How much money would you require before you gave up working for a living?

Again, before I reveal all the results, write your figure down.

I would retire from work if I had a lump sum of……….

Have you written down both of your answers? Good! And now it’s time for the results. Drum roll please!

39% of people asked said that an extra $10000 of income a year would make them feel rich. That’s an extra $832 a month. Would that be enough for you?

Okay, how about this? Another 50% of people who were asked felt that they would need an extra $30000 income a year. That’s an extra $2500 a month. How about that?

The other study revealed that most people would give up work completely if they won $474000. Older workers aged 50-55 needed slightly less at an average of $416000, while people aged 40-50 claimed they would need $550000 before they would consider retiring. This figure will tend to vary with age. Older people generally don’t feel that they would need as much money before they could afford to retire comfortably.

Now of course I don’t know how old you are, but are those figures anything like the number that you’ve just written down?

Great, but what’s all this got to do with being debt free?

Well, just consider the amount of your monthly income that will no longer be swallowed up by debt repayments.

All of a sudden you’ll feel rich!

Let me give you a common example. If you had a mortgage for $240000 and perhaps $40000 of credit and storecard debts, your monthly repayments would amount to around $2500.

Each and every month!

Now if you didn’t have these debts, doesn’t that also mean that you’d have a ‘spare’ $2500 a month just drifting around, kicking its heels? And what are twelve $2500s?

I bet you wish you’d learn your two thousand five hundred times table, don’t you?

The answer is $30000.

So although your income may not have risen by as much as a brass farthing, the very act of clearing all of your debts will have ‘given’ you an extra $30000 income each year.

Is that anything like the figure that you wrote down earlier? Would that be enough to make you feel rich? It was enough for almost 90% of the people in the survey that I referred to.

But you ain’t seen nothing yet. Now for the big one!

If the money that’s no longer needed for debt repayments ($30000 a year) was saved in a suitably safe and tax efficient manner, at perhaps 6% per annum, watch what would happen.

End of Year

1) $31800

2) $65508

3) $101238

4) $139112

5) $179260

6) $221814

7) $266924

$314740

9) $365424

10) $419148

11) $476098

12) $536464

13) $600452

14) $668278

15) $740174

It’s amazing how fast it adds up!

In eleven years you’d have over $476000 which is more than most people said they’d need to retire.

But with one profound difference! These people answered that question on the basis that winning that amount would allow them to give up work.

But you won’t need to wait for that win that will probably never arrive. If you follow this example, it will happen. You will reach that stage. Just give it time and this will happen. You’ll be free to retire, if you choose to.

I hope you appreciate the massive difference between these two situations. It’s a lot more fun waiting for something to happen when you know it will, instead of hoping for something that’s highly unlikely.

And these figures are by no means exceptional. Many people have debts that are even larger than the one I have used in this example. Just imagine the position if you had a mortgage of $360000 and other debts of perhaps $60000!

So repay your debts, and within 11 years you are likely to be in a position where you never need to work again. If that isn’t a big enough incentive to get debt-free, I don’t know what is!

Some homeowners, when they originally purchase their home or refinance, are pushed into an expensive “credit insurance” policy. Despite how they are sold to the borrowers, though, these schemes can often just be one more way that lenders enrich themselves by taking advantage of the financial ignorance of most borrowers. Abusive credit insurance can also be used as a defense against a foreclosure lawsuit.

But what is credit insurance? There are two common types of it — a credit life policy and a credit disability or accident and health policy. Both can be abused by lenders when they force expensive policies on borrowers who may receive little or no benefit from them. Although some policies may be advisable in some cases, expensive policies that have limited or no benefit for the borrowers are a sign of abuse.

Credit life policies will pay off the existing mortgage in the event the covered person dies. Credit disability coverage is designed to be used by borrowers to pay their monthly mortgage expenses in the event of a disability or other interruption in income due to health reasons. Both can be quite helpful for homeowners in certain situations, but these types of insurance are also offered cheaper through other sources.

One reason that other insurance providers may offer such policies cheaper is that the lender, when it pushes homeowners into a credit insurance policy, is often compensated directly by the insurer. The insurance company pays the mortgage origination company for placing the insurance, which gives lenders incentives to recommend the highest-cost policy available.

The potential abuse of such policies comes from the way that the creditors (the mortgage lenders) benefits from the sale of the insurance. Lenders receive a commission, in most cases, determined by a percentage of the total premium the borrowers have to pay. The higher and more expensive the coverage, the more then bank gets paid by the insurer. Of course, this means that the highest cost coverage is offered.

Also, borrowers who purchase a credit insurance policy voluntarily may have the premiums added to the balance of their loan amount. This means that the bank will be able to charge interest on the insurance policy premiums, thereby increasing the cost even more over the life of the loan. This raises the effective interest rate of the loan and increases the profit of the loan to the bank.

While most homeowners may just not be aware of how these policies work and the lenders’ incentive in offering them, the practices described above may not be outright abuses. However, some borrowers have been pressured into paying for insurance policies where they are ineligible to receive any benefits under the terms of the policy. This is an obvious abuse and mortgage companies can be held responsible for it.

However, the most important point for homeowners to remember is that they have a choice with these policies. If the lender is forcing them into one, they can always go with a different bank or lower coverage amount. A future article will look at how the insurers inappropriately deny benefits even for borrowers who have adequate coverage, as well as legal claims against the lenders and insurers.

- Wise Stewardship & Debt Free Christian Living -

Would you like to become a debt free Christian and figure out why some people just seem to have it all go their way? Life just seems “charmed” for these that can attract and retain wealth while others struggle just to make ends meet. Find out what they do differently that can make a difference in your personal finances starting with the 5 steps below:

1) Study Those That Have Been Successful

Great men and women throughout history have painted extraordinary life examples for us to emulate characteristics such as leadership, salesmanship, ingenuity, and selflessness. But what about ultimate wisdom? In his book The Richest Man Who Ever Lived, Steven K. Scott details the wisdom of King Solomon and the ultimate wealth he achieved by following the principles from the Biblical book of Proverbs.

Find your examples and study the successful characteristics of those men and women that you wish to emulate in your own life as a debt free Christian.

2) Make Small Changes Over Time

Establish a baseline for your personal finances and see where you are as a first step. Write down your goals for the year and the next 5 years and then list several things that you know will need to change in order for that to happen. You may say that in the next year you want to earn 20% more as a goal so in order to accomplish that you may need to get a raise at work, take on a second job, or figure out how to cut costs from your current expenditures to accomplish a 20% higher income. Write it down. Start small by taking a lunch to work instead of eating out every day. You may take a part time job doing something you enjoy, but the point is to slowly work toward your goal in small chunks over time.

Your goal could be anything but break it down into small action steps that you can implement right away and that you can build on over time.

3) Seek Out Wise Advice

Friends and family unfortunately don’t always lend sound advice when it comes to personal finance matters. Look for people that are already successful but that are down to earth. Many millionaires live their life in such a way that you wouldn’t know what they are worth but these people understand the principles of finance and living. Find a mentor and ask questions and listen for advice.

Choose someone that you would like to have similar results and then open your mind to the new ideas they may share. Often financial wisdom runs counter to basic logic so if something sounds strange or like the opposite of what you would normally do then test it. Debt free Christian principles are never based on rapid wealth accumulation or get rich quick schemes.

4) Earn More or Spend Less

As mentioned previously if you desire to become a debt free Christian or if you simply have financial goals you want to achieve focus on earning more through multiple areas. Take on a part time job cleaning houses or delivering pizzas. Turn off the lights in the house and regulate your water usage. Perhaps you don’t need the premium cable package and you could downgrade to the basic package to save some money.

There are a million ways to make more and spend less that are way more simple than people realize. Come up with your own list of 5 ways to save more and 5 ways to earn more. After a year is up you will be amazed what this strategy can yield.

5) Pay Off All Debt

Have a plan for the extra revenue you create. One solid technique is called the “debt snowball” method of debt repayment where you take your smallest debt and focus the extra revenue on it until it is wiped out, then go to the next smallest debt and focus the payment from the first debt that you paid off plus your extra revenue until that debt is wiped out. As you move toward the larger and larger debts you have more momentum as the “snowball” is getting bigger and bigger the more you pay off. Use a debt snowball calculator to project your debt / savings.

This method has been proven to decrease debt repayment time, which equates to fewer interest payments and more money saved. If you are a Christian strive to be a debt free Christian, if you aren’t then use the wisdom and financial principles of the time tested Bible in Proverbs to propel you to achievements that only seem to be out of reach.