Why A Debt Reduction Spreadsheet Can Help Guide You Out of Debt

Debt Reduction Spreadsheet

If you are working on reducing your debt, a debt reduction spreadsheet may be the right tool to help you achieve your goal. There are many available for free on the internet and many of them come with a debt calculator that you can easily use with the spreadsheet. Debt reduction spreadsheets make it easier to see where you are starting from on your road to being debt free. As you change the situation, it makes it easier to track the changes you make.

Why A Debt Reduction Spreadsheet is Important?

A debt reduction spreadsheet  is important because it will help your keep track of changes to your income or expenses. Calculations may change for your projected dates of debt pay-off and amounts of payment depending on the debt reduction plan you are implementing. Changes can affect the estimated date of debt elimination in your debt reduction spreadsheet so it is important to record all changes.

The use of a debt reduction spreadsheet also helps keep you motivated by giving you a clear picture of goals and progress made on your debt reduction plan. A good visual aid can go a long way to enabling you to remain disciplined and on track.

Different Types Of Debt Reduction Spreadsheet

Not all debt reduction spreadsheets will look the same. They will vary depending on the debt reduction plan or method being implemented. Debt reduction spreadsheets work really well with the snowball method of debt reduction. Since this method usually requires the debt with the highest interest rate to be paid first, the debt reduction spreadsheet is a valuable way to maintain a record of which debts are to be paid and in what order.

Use the built in calculator on the debt reduction spreadsheet to update data necessary to complete your plan. Keeping track of increases in income or reduction in expenses can allow for more money to be paid towards debts. Using the calculator and making adjustments in the spreadsheet will show how much faster you can eliminate debt. Always customize the debt reduction spreadsheet to fit your personal goals and situation.

Debt Reduction Spreadsheet Alternatives

When I first taught people about debt reduction spreadsheets about 10 years, the spreadsheet was done with paper and pen. However, these days mostly everything automated and done on a computer. So most debt reduction spreadsheets are created on a spreadsheet template like Microsoft Excel. I have even seen a client of mine use a debt reduction spreadsheet on a Mac.

How Credit Card Debt Elimination Will Prevent You From Filing For Bankruptcy

Credit Card Debt Elimination

credit card debt eliminationBeing in debt and mismanaging finances can place a person or even an entire household in a difficult position. In order to free oneself from debt, a lot of individuals consider filing bankruptcy. The recent revisions in bankruptcy laws have changed the situation. With these new laws, it is not as easy for people to be debt-free via bankruptcy. Still, there are still some people and circumstances to which bankruptcy is applicable. However, the effect that bankruptcy brings can last for years. When thinking about filing for bankruptcy, one should first find other options to eliminate debt. Here are three credit card debt elimination strategies which may help.

Credit Card Debt Elimination = No More Credit Card Usage!

Those who do not file bankruptcy have different decisions to make. For example, one person who has amassed 20,000 of debt is in a different position to someone who has 5,000 of debt. The one who has a smaller amount of debt may be able to pay the balance owed without even filing bankruptcy. The person who has $20,000 amount of debt doesn’t have to file bankruptcy, but they would have to make a huge personal sacrifice to eliminate their debt.

If  you are in really serious about credit card debt elimination, credit card usage should be limited. Actually, if one can help it, stop using credit cards at all. Another tip is to pay more than the monthly minimum. Do you know that monthly minimum payments hardly cover additional finance fees? In order to be able to reduce balance significantly, pay the required minimum amount monthly and add $50 or $100 more.

A successful credit card debt elimination plan is rooted in one’s discipline and sacrifice in just using cash to pay for living expenses and necessities.

Credit Card Debt Elimination Options

Request Lower  Interest Rates

If negotiation with the creditor is possible, grab the opportunity to seek lower interest rate. Usually, this can be asked if one has been a good payer to the credit card company.

When asking for a reduction of interest rate, it is best to put the best foot forward. Having a good history of credit and repayment may be able to convince the creditor to reduce interest rates.

Credit score also plays a role when a creditor considers interest rate reduction. A low credit score might need the assistance of debt consolidation agency.

Once your interest rate is lessened, is it much easier to reduce the outstanding balance. This is because your financial fees will be significantly lessened.

Refinancing or Home Equity Loan

Homeowners have an advantage when trying to eliminate debt. Why? Because values of homes increase through time, therefore owners gain equity on their property. When one is a homeowner, it is possible to tap into the property’s equity. Refinancing a home or getting home equity loan will enable the owner to have a considerable amount of money which can be utilized for debt consolidation.

These are just a few debt elimination strategies which can be included in your credit card debt elimination plan. Remember, managing finances properly can lead to a debt-free comfortable life. So click on the link below to see how credit card debt elimination can help get out of debt.

Debt Elimination Plan: The 4 Step Debt Plan

Debt Elimination Plan

For most, trying to get out of debt is one of the toughest financial endeavors you will find yourself in during your lifetime. I have provide you a four step debt elimination plan that will help you get out of debt in a very short period of time. Because the key to eliminating debt is having a strategy and perseverance.

Step 1: The best comprehensive thing you need to do before shedding your debt, is to stop yourself from adding more debt. This could include cutting up those debit cards, stopping yourself from going to your favorite stores each weekend, or delay purchasing that dream car you have always hankered after.

The more debt you have, the more crucial this primary step becomes, because you can not afford to add more issues to what’s already weighing you down.

Step 2- Now you have forestalled more debt from amassing, your next move is to open more avenues to get money to repay your present debt. This is going to be the second thing you do, because many of us attempt to pay down their debt but understand that they have little cash to spare and do not know where to start.

By adding more earnings or freeing up some of your present earnings, you make tackling your debt much better and convenient. There’s no single methodology in releasing or adding revenue, but there are several concepts open to you. Some ideas include having a garage sale, selling new items online, having a tougher corner store budget, eating in more frequently or maybe paying for things only in readies. Choose the best option you are comfortable with, will be the most suitable option to go with.

Step 3- Begin your debt elimination plan by knocking out the debt with the highest interest. This is critical, as you do not want to be paying more then you fully have to. Use that additional revenue you’ve made available to help in paying for it. Look to target your goals way higher than the minimum standard payment.

Instead, try and pay as much as you can now instead of later. Point your concentration on one piece of debt at a time, don’t spread your cash around otherwise it will not feel a bit like you do much progress.

Step 4- Once you have paid off your higher debts, you could have made available even more revenue since you do not have to pay that any more. Don’t stash that additional money into a savings account, or use it to go to a complicated restaurant . Instead, add that portion to the remainder of the money you’ll be using to pay down the debt with the following highest IR. Keep going down the road till you have paid off all the debt.

Though this is quicker said than done, by following this debt elimination plan process you give yourself the tools and mind-set you want to really dispose of your debt once and for all.