In this article I will present a very good method that you can begin using to pay off your debts. One of our readers asks: have 10mil dollars of debt, what are the steps I should follow to pay for it? The Elimination of debt involves three steps: 1. stop accumulate new debts 2. Have a background of emergency 3. Implement the debt snowball effect then will introduce you as face each one of these steps: accumulate new debts this step can be a little obvious, but it is very important to mention it. One of the main reasons why you have debts is because you are still constantly increasing it.It is important to stop using credit and cards. Don’t look for any financing.
When you’re in debt, credit cards are a very dangerous weapon, since all they do is increase your debt. Maybe now after you do not have debts can begin to use cards, but remember to do so with caution. When you have cancelled your cards, make sure you remove any recurrent expenditure as subscriptions to the gym, magazines or any other automatic charges. Establish an emergency this step Fund refers to having a savings fund always ready for any emergency that may (and usually) appear. Why do this? We can ask many, the answer is very simple: you never know when you may appear unexpected and urgent expenses. And by this I mean not having an emergency credit card.
It destroys your cards and saved money better. How much should I save? A few thousand dollars are generally good to begin with. This money is only for emergencies, not for any other kind of spending. This step is not instantaneous or much less, we can go accumulating this Fund with the passage of time adding little by little money. Implement the debt snowball effect once you no longer use your credit cards and have your Emergency Fund, is time to attack your debt. To do this, you can follow the following steps: 1. order your debts from the smallest to the largest. 2 Assign an amount of money that You will pay each of them a month 3. Pay the minimum for each debt except the lowest of all 4. Any money that you have available, use to keep paying it having less balance. 5 When that debt is gone, it continues to pay other debts with the same amount and more engaged your money that has less balance. It may be that it is a process slow, but the snowball effect is very good because you begin to see immediate results that motivate you and drive to move forward with more determination and desire. Remember, this is only a model that you can apply to your financial life, does not mean that it is the only one that exists. What is that it is a great choice for anyone with debts. Greetings and we are in touch!