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22ND NOV 2008
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Are you a University or College student knee deep in debt? student loans, overdrafts or credit cards? or even a bank loan - it all gets you down in the end so here's our students guide to getting out of debt. Sort your finances once and for all.
Everyone knows that consumers today are carrying more and more debt, and that for many people servicing that debt has become more and more of a burden. Getting out of debt is consistently one of the most important considerations for consumers, and that is continued to remain true for quite some time.
If you need to reduce your level of debt, the first step, of course, is to know where you stand at the moment. Without knowing your current financial situation, it will be impossible to take the steps you need to get your debt under control.
One of the most valuable exercises anyone can do, whether they are in debt or not, is to run a simple list of everything you own, and everything you owe. Understanding your assets (what you own), and your liabilities (everything you owe), is an essential first step to any debt reduction program.
After you know where you stand, the next step is to examine your list of debts and determine which ones should be paid back first. Priority should be given, of course, to essential bills like rent, mortgage payments and utilities, but after they have been taken care of the next step is to rank what remains according to the interest rate.
It is not unusual for the interest rates on credit cards and many consumer loans to be extremely high, and getting rid of these high interest debts may be the most important thing you can do to get your financial life back under control.
That is because getting your finances under control while carrying high interest rate debt will be very difficult indeed. As a matter of fact, if you pay only the minimum on your credit cards, you could be in debt forever. The sooner you get rid of the highest interest rate debt the better off you will be in the long run.
After your highest interest rate debt is gone, the next step is to examine what is left and begin to pay down the remaining debt with the highest interest rate. By focusing on the interest rate you will be able to apply the money you have where it will do the most good. www.1stcall.com
Provided by The Student Zone (United Kingdom) |
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