ontrolling your debt is Let me give you an example. If
the first step to preparing you buy $1,100 of Christmas gifts
for investing in the stock and pay %18 on your credit card
market. If your debt is high then balance after the one month grace
your debt payments are high. This period it will take you 12.5
means that you have very little years to pay it off if you make
to save and invest each month as the minimum payment the credit
compared to if you had little or card company wants you to pay. If
even no debt. you just paid $10 extra you would
pay it all of in just 6 years
Here are two practical which is half of the time.
suggestions to get you out of
debt. The first (1) is to always But what if you had a $5,000
pay more than the minimum payment balance? At the minimum payment
on any debt you have. The second it would take you 46 years to pay
(2) is to reduce the interest you it off! You would end up paying
are paying without lengthening $13,000 in interest. If you
the time that you have to repay reduce the interest rate to 9%
the debt (known as the maturity you would pay it off in 20 years
or amortization) if you can. and save $10,000. What ever you
Don't ever forget that when ever do make sure you pay it all off.
you have a lender reissue a loan
at a lower interest rate The same concept applies to your
frequently you jump back the home mortgage. If you have a 30
original length of the mortgage year $100,000 mortgage at 7% the
in months and years. Don't trust monthly payment would be. If you
bankers because they are there to paid an extra $100 per month
make a buck for their company at toward the principal then you
your expense! would pay it off 9 "½ years
earlier. You also end up paying a
LOT less interest over the life in a few years you will be amazed
of the loan! where you will get. This is how
you start as a stock investor by
This is how you dig yourself out digging yourself out of debt.
of debt. Just like filling in a Once you have control over your
hole you grab a shovel. You make debt the money that flows to you
that first scoop. You start will not leak out but will grow
filling. Same goes for getting and keep just on growing!
out of debt just get started and
About the Author:
Dr. Scott Brown, Ph.D. a.k.a. "The Wallet Doctor" holds a doctorate in finance and can teach you how saving the daily price of a cup of coffee at Starbucks can make you a millionaire in the stock market through long term stock investing. Dr. Brown's website is: http://www.walletdoctor.com/
Source: www.isnare.com
