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The 10-Step Debt Elimination System by George Allan The Simple, yet Effective, Idiot proof,
Iron Clad, No Holds Barred, Debt Elimination system, Devoid Of Any Fine Print Just take the following steps…. Your goal
of debt elimination will be achieved….
1.
Check the recorded expenses for the last 12 months. One year is a
sufficient period for checking personal experience. Check all recorded expenses,
bank statements, cancelled checks, credit card statements, or whatever other
record you have. For cash expenses, carry a small notebook with you for few
weeks and note down all expenses, however minor it may seem to be. At the end of
the day, you will be amazed to see molehill becoming a mountain. I have gone
through this. It is a pain really.
2.
Find out the total monthly expense, by dividing the recorded expenses by
12 and adding the cash expenses adjusted for a month.
3.
Make a list of your debts. Do not forget to include mortgage. Call your
creditor if you do not have information handy. (However, it pays to keep the
information handy)
4.
Make a list of minimum payments on your debts that you have to make every
month. Assume that the total comes to $2000 every month.
5.
Find out debt remaining repayment period assuming minimum installment
every month.
6.
Rank your debts on the number of months for repayment in ascending order.
That means, the debt with smallest number months remaining for repayment, is the
first number. Go on until the last debt.
7.
Make a priority list of for repayment of your debts. Your highest
priority debt should the one that you can pay off in the minimum number of
months. Your lowest priority debt is the one that will take you the maximum
number of months. Perhaps this will probably be your mortgage on home.
8.
In step No. 4 you have calculated your minimum repayment as $2000. Make
up your mind to increase this by 10%.
9.
To have an additional $200 for repayment, reduce $200 from your expenses,
and reserve it for additional debt repayment. Think of all the possible ways to
do this. Make a determined effort and most likely to will exceed your target of
$200.
10.
Use this additional $200 for repayment of first priority debt. If you
were paying $100 previously, now you will be paying $300. This $300 will have a
cascading effect on your repayment as soon as the first debt is paid off. You
will now have $300 additional for repayment in place of $200 that you had from
your savings
This way you will be debt free in few
years. The beauty of this system is that came from just $200 that you have saved
in years of your resolve to be debt free. When you have paid off the final debt,
you will find that you have a much larger amount in hand to spend than your
original $200 a month that you saved initially from your expenses. The cascading
effect of your saving $200 will be evident in coming years. Not only will you be just debt free in few
years, but also will have a built a substantial base on which to build up your
dreams. All this for just$200 per month of your initial saving efforts.
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