Personal debt consolidation is not difficult. In fact, many Americans are taking care of their own debt and developing their own strategies. This is a simple personal debt consolidation strategy that will allow you to beat the lenders before the beat you.
1. No longer accumulate consumer debt. From now on anything you purchased on a credit card must be paid in full at the end of each billing cycle, absolutely no exception.
2. Make a complete list of all of your debts. Make sure to include all car loans, school loans, credit cards, home improvement loans, and any other debts that you might have acquired. It is not a bad idea to even include your home mortgage on this list.
3. For every item that you have listed make three columns next to it: a. List your current balance on any amount owed. b. Write down your minimum monthly payment. c. Calculate the number of months it will take to be paid off.
Write down the estimated total into each column. To determine the amount of months it will take to pay off, divide the amount that you owe by the minimum payment. Throughout time when you're balance goes down, your payment will go down, which may directly affect the totals.
4. Take the number of months and began ranking each debt. Place a one by the lowest number of months, a two by the second lowest number, and continue this process until you get to the bill with the highest number of months. This is the order that you will pay off your debts. You start with the lowest number of months so you can achieve success in this program quickly. Once you get your first bill paid off you will fill good about yourself and see light at the end of the tunnel. This is the first move in personal debt consolidation.
5. If you are dedicated about getting out of debt and becoming financially free, then generate $150-$200 per month. To be blunt, if you cannot generate this money then your odds of becoming financially independent are slim.
6. Begin paying the minimum amount on every debt that you have except for the debts that you have put a 1 by. On the debt marked with a 1, apply the $150-$200 plus the minimum amount due. Do this every month until this debt is paid off. When you have paid this bill you'll scratch it from your list.
7. Take the time to congratulate yourself!
8. Once again pay the minimum amount that is due on every bill except for the debt that is marked 2. On the deal marked 2, paid the minimum amount due, add the minimum amount payment and that deal number one had and apply it also, applied the hundred and $50-$200 extra to this bill now. Repeat these steps on every bill and you will be amazed at how quickly your debts will be paid off.
9. Pat yourself on the back and congratulate yourself.
10. By the end of your debts owed, your monthly payments should be quite substantial. After your bills are paid all use the same program to build an emergency savings fund, and eventually start investing. Congratulations, you are on your way to financial freedom and you succeeded in your own personal debt consolidation system.