Drug testing

Debt Elimination 4

Planning For Debt Elimination Without Surplus Cash

Previously we looked at using surplus cash each month to chip away at those outstanding loans, on our long road to debt elimination. But what can you do if there is no surplus cash every month?

So, you have examined your monthly outgoings, and there is nothing to cut out in the way of expenditure. Or you can make some savings, but it just brings your outgoings and income into balance each month, whereas before your outgoings were in excess of the income. Well, at least you have made some progress by bringing income and expenditure into equilibrium. But where does that leave you in your debt elimination challenge? It is probably time to focus on those debts, and see what can be done to bring down the cost of those loans, and the monthly repayments. It may still be possible to plan for debt elimination in 5 years, especially with your newly developed anti debt mindset.

Taking out another loan will not, of course, bring instant debt elimination. However, it may be that a debt consolidation loan will give you a chance to structure your plan over a 3, 5 or 7 year period. With the right approach, this may be an excellent opportunity to improve your finances no end, resulting in debt elimination at the end of the loan period. The key will be in whether you are able to reduce your total loan repayments, and whether you are then able to set aside those savings each month. Let us look at a simple example, of a consumer who has two credit cards and two other loans. He owes a total of $11300, and has a minimum monthly payment of $346. Let's say he is able to obtain a new consolidation loan at 10% annual interest, and would have repayments of $240 per month over 5 years, a saving of $106 per month, or $6360 over the 5 year period.

That is a significant amount to put away each month. Enough for a replacement second hand car? No need for any more loans? In which case, debt elimination, by our definition excluding the mortgage, could be achieved within that 5 year period.

There are, of course, millions of permutations of figures, so you will have to consider your own. But the principles are always the same. Living within your budget, planning ahead, and saving for any future purchases in cash. That's a simple formula.

All it needs to accomplish debt elimination is your new mindset; the mindset that does not want debt, borrowings, loans to be a part of your future life. The mindset that has patience in clearing the debt, and is able resist new purchases of optional items until the cash is available.

It is worth always remembering, if you cannot to afford to pay cash for something, then you cannot really afford it at all. The only exception is the house, where the investment potential and rent saving alter the financial viewpoint.

Once you have the cash-save mindset, you have all you need to clear unwieldy and expensive debt from your life, once and for all.

This debt elimination article was written by Roy Thomsitt, owner of the Eliminate credit Card Debt Now website.

limousine chicago service
In The News:

Is A Debt Consolidation Loan Your Best Option?

For many people the lure of easy credit has taken... Read More

Debt Consolidation Made Simple

If you have considered debt consolidation then you are probably... Read More

Cutting Your Monthly Outgoing With Debt Consolidation

With consumer debt on the rise, many people have found... Read More

Getting a Better Consolidation Loan Secured

If you're looking for the best way to reduce the... Read More

Credit Card Blues

For the average American family, debt, and especially credit card... Read More

Debt Consolidation ? Options for Reducing Your Debt

Studies show that Americans are now saving less than ever... Read More

What You Need to Know About Debt Consolidation

Debt consolidation is often a last resort for people who... Read More

Are You Buried In Debt?

Are you having a problem paying your bills? Are you... Read More

Bad Credit Debt Consolidation Loan

Nowadays, many people can get into a bad credit situation... Read More

Debt consolidation ? More Options for Reducing Credit Card Costs

Borrowing money against your credit cards has always been among... Read More

Debt Consolidation ? Can You Negotiate with Your Credit Card Company?

The average American household has nearly $10,000 in credit card... Read More

Pay Off Debt Now: 5 Steps To Getting Your Finances in Order

In our world of dizzying change, nothing is more true... Read More

Consolidating Your Government Student Loans

A Consolidation Loan allows you to combine your federal student... Read More

10 Pointers on College Loan Consolidation

Should I consolidate my college loans or not?1. Still in... Read More

Debt Consolidation for Homeowners: Saving Grace for Inept Borrowers

You cannot understand the importance of being a homeowner until... Read More

Re-Mortgages ? There?s Help For Bad Credit Ratings On The Way

As any report on the subject will reveal, million of... Read More

How To Get Rid Of Debt Problems Step 1 -- How To Deal With Your Creditors

However far you are along the road of financial/debt problems,... Read More

Burdened with Debt?

Too many debts? Having trouble paying your bills? Are you... Read More

Finding a Low Interest Debt Consolidation Loan

If you are in the market for a low interest... Read More

7 Ways to Consolidate Your Debt

If you are in debt, you have several options available... Read More

Debt Consolidation Refinance Loans - A Great Way To Lower Your Bills

For millions of homeowners, refinancing is the perfect way to... Read More

How To Get Rid Of Debt Problems Step 2 -- How To Prepare A Financial Statement

Here is how to prepare a financial statement, for the... Read More

What Is A Debt Consolidation Program?

Debt consolidation programs are devised to get you out of... Read More

Credit Counseling ? Congress Offers No Details in New Law

The recently passed Bankruptcy Abuse and Consumer Protection Act was... Read More

Debt Consolidation: How it Works

As long as consumerism flourishes most of us will be... Read More