I Am Under The Debt Management Program - Approved! October 24, 2008
Posted by Vedis in : Debt Management Plan , add a comment
What a relief! My debt management program was approved! The offer letter was signed yesterday.
From now on, my credit card debt has been restructured into ONE payment. Instead of running various banks making various amount of minimum payments on different dates, I only need to make ONE payment to ONE agency on ONE date.
No more phone calls and notices from banks.
This also means that I will have extra money in hand to be saved as emergency funds or used to buy ephedra products for my home-based business.
Money Mistake # 1- Paying Only The Minimum On Your Credit Card October 18, 2008
Posted by Vedis in : Debts / Credit Card Debts , 1 comment so farAre you making the same mistake that I did ? If I made the $50 minimum payment on a $2,500 credit card bill (at 18% interest), it’d take me 34 years to get out of debts !! You see it ?! And I’d have paid $6,430 in interest, about my twice original charge !
After realizing that most of my payments went to interest, while the principal went down by only $3 to $5 a month, I began to pay a little more than the minimum balance, the principal started to go down steadily.
My advice to you — pay as much as you can and always more than the minimum. And don’t charge another thing until that debt is paid off.
It’s also wise to look into transfering your balance to a credit card with a lower rate.
You Can’t Make Your Minimum Credit Card Payment December 3, 2007
Posted by Vedis in : Credit Cards , add a commentYou are not able to make your monthly credit card payment because you’re going through a period of financial difficulty, or you’re simply overspent.
When you can’t make your monthly credit card payment, the absolute worst thing you can do is just let the bill go unpaid. Your creditor can charge you a late fee, raise your interest rate, and report the late payment to the credit bureaus.
Not only that, if any of your other creditors have a universal default clause in your card agreement, your interest rate on those credit cards will go up, too. (more…)
5 Simple Debt Reduction Method to Financial Freedom April 5, 2007
Posted by Vedis in : Debts / Credit Card Debts , 5comments“It doesn’t matter now.”
I have been telling my friends this recently whenever someone finds out that I am in Debt Trouble. It just doesn’t matter how we got into our debt trouble. Stop harping on what we spent on, how much we spent and why we bought those junks that we thought they were “must-haves” items at that time.
“It just doesn’t matter now.”
The most important lesson we have learnt from getting into debt is to get out of debt trouble as soon as possible.
Have we taken actions ? Yes, we have and we are. Here is our Simple Debt Reduction Method at the moment before we apply more advanced techniques for debt repayment:
1. Cut Off Credit Cards to Avoid Extra Charges. I still keep 3 credit cards. Originally, I owned 7 credit cards ! (I once boasted to my hubby that I wanted to own 10 credit cards ! Silly enough !) I am waiting to snip another credit card. My hubby has cut off 3 out 6 credit cards.
2. Write to Banks Asking for Lower Interest Rate. Now, our interest rate is between 9% to 12% per annum. 18% per annum is really a burden.
3. Spend Less. Many people have the impression that Women are the Big Spenders ! Wrong, you guys. My hubby is the big spender here. Again, you get him wrong. He doesn’t smoke, drink or flirt. He is just a watchmaniac ! He likes admiring, buying and keeping watches.
4. Make All of the Minimum Payments early or on time.
5. Use Cash if possible.
They are simple steps to implement. Just do it !
