Saturday, January 11, 2014

How to make debt reduction plan

The debt can make people bankrupt. The amount of the debt increasing when we do not pay the debt on time. The debt also can load our finances. We have to make the debt reduction plan to settle our debt fast.

Here are ways to make debt reduction plan:

Tracking everything
In the middle of month, some employee confuse because the money almost loss. They do not know where the money gone up. They do not track it.
Supposedly, you should track all of your money. It help you to allocate the money to the debt payment. It is not difficult to do that. You just need to record the spending in a piece of paper or you can record it at spreadsheet. 
Base on tracking, you can make a budget. Set aside the money for the debt. To settle the debt fast you must prioritize the debt.

Balance the budget
The generic ways to balance the budget is to reduce the spending. This is not an effective ways to settle your debt. You need to pay attention to your income side. Try to boost the income to pay the debt immediately. There are so much ways to increase the income. If you cannot do it, you can reduce the spending. Use the generic product to save some dollar.

Renegotiate debt
You can ask the creditor to enlighten your debt. You can buy the interest only for temporary when you have so much money, you can pay the debt immediately. It will good when the creditor forgive your debt.

Generate income from the debt
Some people put the loan to deposit. It must be wrong steps. The loan interest is higher than the deposit interest so they must pay the interest. If you have house or car, you can generate income from them. The house or the car that you have not pay off can be hired to anyone. You can use money to pay your debt.
In my country, some public transportation use this way to get the transportation. You do not have to sell the asset but you still be able to pay the debt.

Generate income from investment
This time, you need to generate income from investment. Despite the economic downturn, you should find the investment that can makes money. There are some stock from Brazil, India, Russia, and China that can makes money. The money that you can get from investment will help you to settle the debt.

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