Debt,Relief,Using,Your,Current finance, share, loan Debt Relief Using Your Current Income

If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that

Debt is a hard thing to live with, but we all have it and deal with it everyday. Sometimes it is manageable, sometimes you feel like you can barely keep your head above water and unfortunately many times you feel like you are drowning in it!Is there a way to get out of debt without getting a second job orhaving to increase your income in some way? Can the average person take his or her current income and pay off his or her bills in a matter of a few years, including the car and mortgage payments?The answer is YES!!! You can do it without having to cut out all of your fun and extra-curricular activities as well. Now, you may need to cut down on going to the movies or going out to eat, but you will not have to stop altogether. It is a matter of putting together yourplan and then sticking to your plan!The process is fairly simple, most people just don't realize it. Anyonecan get started right away, including YOU right now! Here is what you need to know:1. What is your total net income?2. What are your debts and minimum monthly payments? (Don't include any extra money you are paying towards any debt. You want only your minimum required monthly payments.)Okay, are you ready to begin?The first thing you need to do is take a percentage of your NET income(a good beginning point would be 5%) and write this amount down at thetop of a blank sheet of paper.Next, write down each of your debts (not including utility bills, insurancepayments, property taxes, etc.) in a column at the left side of your page.Beside each debt, write down your total balance and then your minimummonthly payment.Once you have all of these down, divide your total balance by the minimum monthly payment. Write this amount next to each debt. Taking the debt that has the shortest payoff number, number this number 1. Taking the next shortest payoff, number it number 2 and so on until each debt has a number next to it. These numbers indicate the order in which you willbegin to pay off your bills.Now, here is where your 5% comes into play. For debt number 1 take theminimum monthly payment and add it to the 5% figure. Divide the totalbalance by this new amount to get the total months it will take to payoffthe debt. For debt number 2, you will take the minimum monthly paymentplus the 5% plus the minimum monthly payment of debt number 1 (sinceit will be paid in full) and add them together. Again take the total balance and divide it by your new monthly payment to figure your total months to payoff. Do this with each debt until you are finished. Once you have completed this, add up the total months to pay off yourdebts to figure an estimate of how long it will take you to pay off all ofyour debt.Example:Visa total balance $6300.00 divided by minimum monthly payment of $153.00 = 41 (months to payoff) 2 (second to payoff)Auto Loan $13000.00 divided by minimum monthly payment of $356.00 = 36 (months to payoff) 1 (first to payoff)Mastercard $5266.00 divided by $96.00 = 54 3 (third to payoff)Mortgage $43,000.00 divided by $325.00 = 132 4 (fourth to payoff)The auto loan is the first to payoff because it has the shortest amountof time before it is paid in full. Then your Visa balance and so on.Net Income = $1500.00 x 5% = $75.00Taking your first debt to payoff which is the auto loan:minimum payment $356.00 + $75.00 = $431.00total balance $13000 divided by $431 = 30 (months it will take you topayoff this balance using additional 5%)Visa: $153.00 + $75.00 + 356.00 (since this loan amount is paid infull) = $584.00total balance of $6300.00 divided by $584.00 = 11 (months it will taketo payoff credit card)Mastercard: $96.00 + $75.00 + 153.00 + $356.00 = $680.00total balance $5266.00 divided by $680.00 = 8Mortgage: $325.00 + $75.00 + 96.00 + 153.00 + 356.00 = $1005.00total balance $43,000.00 divided by $1005.00 = 43Add your months together: 30 + 11 + 8 + 43 = 92 approximate months to have all of your debt (including you home) PAID IN FULL! This is about eight years! Can you imagine being debt free in eight years???? That means that your home would be free and clear and you would have 100% equity!If you apply the above formula to your financial situation, you can be debtfree without getting a second job or without working extra overtime! Imagine the time you can spend with your family and friends instead of working. Of course if you take a higher percentage of your net income, you will pay off your debt faster!This is something that anyone can do based on simple math. The trick toremember is to NOT use your credit cards. In fact, cut all but one up! Get rid of them and just keep one in case of a major emergency. Startyourself a savings account to begin building up your emergency funds.Eventually set goals for yourself to save for college funds, retirementfunds, etc.Remember this fundamental rule: PAY FOR CURRENT EXPENSES WITH CURRENT INCOMEMuch Luck to You,Carolyn Shipphttp://bucksback2u.com/carolyn/rewards.html Article Tags: Minimum Monthly Payment, Current Income, Minimum Monthly, Each Debt, Total Balance, Monthly Payment, Debt Number, Total Months