These easy ways to get out of debt will help you solve money problems and achieve your financial goals. These tips for creating financial abundance are from money expert Courtney Kostelecky, who teaches regular “Get Completely Out of Debt” seminars.
Here’s what he says about debt:
“Debt – whether it’s good debt or bad debt – can be difficult to deal with. In today’s economy, creditors are becoming much more aggressive in their collection tactics. Consumers need to be aware of what a collector can and cannot legally do.”
For help stopping the downward spiral of debt, click on the How to Get Out of Debt, Stay Out of Debt, and Live Prosperously (Based on the Principles and Techniques of Debtors Anonymous)by Jerrold Mundis. And, read on for Kostelecky’s tips on reducing debt, saving money, and paying your bills…
5 Tips for Getting Out of Debt – the Easy Way
Get financially organized
To pay off all your bills and create financial abundance, you first need to know exactly how much money you owe. Many of people are amazed at how much money they really owe, when they sit down and figure it out for the first time. Set aside three or four hours to calculate your debt and create a plan to save more money.
Prioritize your bill payments
One of the biggest money mistakes people make is paying extra money because of the interest on their debt. Unless you pay off your debt the right way, you’ll never make any real progress. Pay off the debt on the bills that have the highest interest rates, then move on to the bills with lower interest rates.
Don’t focus on interest rates
Yes, it is true that a lower interest rate can save you money, but focusing on this is the main cause for people getting farther in debt. I recently had a personal consultation with someone who transferred their balance on a credit card to a zero % offer. They paid $600 to do this, and the zero % is only good for one year. After that it increases, which could cause financial problems later.
This is also true with mortgages. Every time you re-finance your mortgage, you start the amortization all over again. This is why many people are taking 40+ years to pay off a 30 year mortgage.
Remember: small changes can have HUGE effects
There are a lot of small money saving techniques and strategies that can help you get out of debt. For instance, you can cut back on one coffee a day (approximately saving $4 per day). This is an easy way to start solving your money problems.
Stay focused on your financial goals
Even though the average person can pay off their credit card debt in 2-3 years using the system I teach, that is still a long time to stay focused.
If you have any questions or thoughts on these ways to pay bills and save more money, please comment below.
Courtney Kostelecky is an author and speaker. Visit DebtFreeNews for his free wealth building and debt elimination tips.