DEBT ELIMINATION: HOW TO DO IT 7-1/2 YEARS WITH YOUR PRESENT INCOME!

You Don't Find Your Credit Card or Lenders Teaching Debt Elimination , Why?

The KEY to this potent debt elimination concept is that 10% portion of your income will be temporarily set aside to pay extra on your bills in a very specific sequence.

It's A Flexible Debt Elimination Plan

The amount can obviously be more to make the payoff occur faster. It can also be less, but the payoff of course will take longer. This is a very powerful concept and one method that works.

You will have to make a few adjustments and rightly so, you are going to Eliminate All Your Debt!

If you don't have the extra 10% income here's how to find it and I bet you didn't know you had it!

HOW TO GET THAT EXTRA 10%

It may seem like your searching for a needle in a haystack but it's probably a lot easier. Word caution, if you just lost your job or you've just took a pay cut and your income is less, don't worry there is a similar debt elimination plan that will be perfect for you.

Step 1

Gather your last six to seven months of your checkbook register. Make a list of items that are not credit card or installment bills because they will soon be paid off. Also taxes don't count because those will never be paid off, unless they're back taxes and they need immediate attention.

Use expenses like groceries, entertainment, lunches, savings, etc. These are items that you can control your spending. Other ideas to help you to get creative. Think of other activities or extra expenses you can save.

Your goal is to achieve a total of 10% of gross? For example how about holding off on your monthly savings. Or get a basic telephone service. Find a cheaper cable tv service or temporarily stop the service. The same applies to internet service.

Also grocery coupons are a great source to save extra money, you get those in your mail.

I know what you're thinking but this is only temporary until you start to see a significant amount of extra cash growing at which time you can cut back. The object here is to find ways to cut back and find the extra money. Do this exercise and you'll be surprised how much you can save using this debt elimination plan.

Now that you have the extra 10%, here is how to establish the new pay plan to get out of debt in 7.5 years.

Step 2

Make a list of all your credit cards, installment loans as well as any mortgages you may have. Divide the total payoff amount by the monthly payment. Assign a numeric sequence starting with 1 for the lowest division answer, 2 for the next lowest, etc.

Each month make the normal monthly payment to each debt except debt one to which you also apply the 10% you found in the exercise above.

Repeat until debt one is paid. After you accomplished that start on the next debt. Pay the minimum monthly on all bills except debt two.

With debt two, apply the minimum monthly + Extra 10% Found + amount of the former debt one payment. Continue until debt two is paid.

Get the picture?

Now start on debt three with the Extra 10% Found + former debt one + former debt two, etc. As you can see, you have been using the same out going expense amount but now you are taking the extra money to payoff the next bill. I hope you can see the POWER in this!!

The great part of this system is that after a few months you'll realize maybe you didn't need what you've have been wasting your money on; therefore you can permanently eliminate some temporary Extra 10% Found items for the rest of your life.

CONCLUDING QUESTIONS

The most common question that comes up when using this debt elimination payoff method is about high interest credit cards. No you don't have to start with high interest cards unless your goal is to eliminate all debt.

The objective of this plan is to pay off a couple of the smaller debts first and use this money as leverage to pay the rest. Where you might consider paying off high interest cards is if you pay only specified accounts but not all debts.

This method is the fastest possible method of eliminating ALL debt with the money currently earned.

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