(PRWEB) September 30, 2011
The first step in eliminating debt is figuring out exactly how much debt you have and what your interest rates are, and calculating your total monthly debt payment, says John Wills, manager at Consumer Benefits Alliance LLC.
To help you do this, Consumer Benefits Alliance has created a simple financial tutoring plan which consumers can follow to eliminate debt.
Step 1. Calculate Your Monthly Living Costs and Income!
After you know exactly how much debt you have, the next step is calculating your monthly living costs and income. The amount of money you make and spend each month is a major factor in deciding the best strategy to reduce your debt.
Step 2. Understand Your Options and Make a Plan!
Now that you know how much you owe each month on your debts and the amount of money you have left over after your monthly expenses are paid, you can determine if paying off your debts as they stand is a viable option.
Option 3. Make Your Payments as Agreed Upon!
“You need to make payments to your creditors on time and with interest. Anyone who tell you otherwise clearly does not have an understanding of the negative impact missing payments can have on your FICO score,” says Willis, “not only is it morally right to honor your obligations, but failing to pay will could possibly lead to legal judgments against you and liens on your wages and personal property. If you want to borrow money in the future for a large purchase such as a house or a car, you will have to pay a significantly higher interest rate, if you can get credit at all.”
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