DEBT Clearance: Puttin an End to Your Debt This Year

Debt clearance from your life is easy but one has to be discipline and wary of procrastination.

debt clearance

Debt is a duty or obligation to pay money, deliver goods, or render service under an agreement. There are three basic rules to follow to succeed.

Debt Clearance Basic Guide

A. Stop borrowing money again
B. Try to reduce your spending (Don’t use money you don’t have)
C. Paying-off debts with finesse

If an individual can adhere to these three basic rules, one will eventually be free from the snares of debt. We have to note that it won’t be smooth ride, but it will be worth all the troubles. Here are some helpful ways it can be done:

Debt Clearance: Know your debt profile

To solve a problem, one has to first of all, acknowledge that such a problem exist, it is then that a solution can be proffered. These are few tips to help you know your debt profile:

A. Write out your debt on paper
B. Using a working software for personal finance
C. Be very prudent
D. Please make sure you involve others (Families and friends)

Constructing a framework for debt clearance

After knowing your debt profile, now is the time to discover a way out of your financial predicament. There are no straight ways to work with, you have to work with what works for you and your loved ones.
Consider the following tips and tools for a successful debt clearance:

A. Make a budget of all your expenses
B. Using a debt repayment calculator will not be a bad idea.
C. Be real about offloading your debt
D. Be tenacious about offloading your debt
E. Prioritize your debt clearance (Scale of importance)
F .Kindly make sure there is an emergency fund, you don’t want to be empty when you are in dire need of money

Make sure your credit score improves

Credit score is important and paramount to getting reduced interest charges ,there improve on it. Follow this tips to make sure your credit ratings is top notched:

A. Know the benefits of credit rates and scores
B. Make sure your bills are pay as at when due
C. Please make sure you don’t close running bank accounts

Look for avenues to reduce interest rates

Let’s say you are working on making your credit score good, make sure you are obvious of the fact that avenues to reduce interest on debts are much available for your to catch on.
You can do these through this ways:

A. Make sure your debts is refinanced on time
B. Look for low interest rates for credit cards (Citi banks offer 0% to 1%)
C. Bargain for low interest rates on equities and mortgages

Earn more money than you spend

The best way out of this conundrum of financial mess is to earn a good income and spend relatively low. Here are some ways to do that:

A. Read books on personal fiancé
B. Reduce your standard of living
C. Make more money
D. Avoid gambling and ponzi schemes
E. Earn bonuses for work done

Conclusion

In conclusion, clearing off your debt this year require you earn very good income and spend very low compared to your income.

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