Countrywide Payoff - Living Debt Free

2009-02-03 10:15:51

( Financial )



If you have a certain amount of money available to pay off a portion of your debt each month, even if that certain amount changes, there is a mathematically correct way of paying off that debt. With a little dedication and prior planning, it is possible to reduce your debts on your own.

Evaluate your debts

Collect all your financial documents and print out your credit reports to see exactly where you stand. Write down the balances, interest rates, and monthly amount due for each of your debts including auto loans, personal loans, credit cards, and other debts. Mortgage loan payoff can be excluded at this time as this is relatively long term and it is better to focus on paying off your other debts first.

Examine your budget

Write down your monthly income after taxes and subtract your rent or mortgage payoff from this amount and other monthly expenses such as insurance, utilities, and groceries. Once you have subtracted all of your expenses, calculate how much you have left to pay off your debts. You can also utilize a debt payoff calculator to get a rough estimate. If this amount is too small, look for ways to reduce your spending.

Formulate a plan

Now that you know all about your financial situation, it is time to create a plan for reducing your debts. Subtract your minimum debt payments and monthly expenses from your monthly income after taxes. The remaining amount should be used for debt payoff with the highest interest rate and the highest balance.

You may be able to lower your interest rates or negotiate a reduced settlement on some debts by using countrywide payoff. Also think about moving some of your credit card debts to new accounts with lower interest rates. Moving a balance to a credit card with 0% introductory rate for 6 to 12 months can help you save a lot on interest. During this time, investigate if consolidating your debts into a personal loan, countrywide payoff loan or home equity loan could help too.

Do your best to meet your payment goals each month. Try to consistently put as much as possible toward your debts. Signing up for a countrywide payoff automated payment system and keeping a chart of your progress on the refrigerator can help you stay on track. Before you know it, you will be debt free!


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