How To Get Out Of Debt & Rid Of Debt

Oct. 21, 2009 - PRLog -- There are several ways to get out of debt, and the first  main factor is not to hide away and bury your head in the sand! After all if you do this you will simply continue falling deeper and deeper blindly into debt black hole.

http://www.get-rid-of-debt.net

You need to pull together all the bills and other monies owed (all of them), along with the cash you have coming in and log it all on a piece of paper(s) or spreadsheet to grab a hold of your current situation.

Look closely at what you owe as you go through, for example credit cards; - because credit cards are "revolving" monthly credit charges, you inevitably pay more in the long run as interest is added monthly to the balance, it can grow very quickly, so sit down and work read through the statements!

Look at:

1) The balance at end of month outstanding (example - £2500)
2) Payments made by you to reduce the balance - (example £35.00)
3) Interest and charges added - (example £25.00)
4) minus your payment from the month end figure and then add in the charges :=

For example

£2500
35 -
------
£2465 =
25 +
------
£2490 =
------

This implies that if you simply pay the minimum fee each month, it doesn't go down much at all! Although you paid £35, the net difference to the balance is just £10.

Take the figure it actually gets reduced by after all the deductions and divide into what you owe (eg £2500 balance / by £10) = this would take 250 months to clear.

250 months is 20.8 years!!! add up all those payments...

I know this is not an exact figure and the balance will adjust but just to give you an idea of how the picture roughly looks so you can see the concept.
With a minimum payment structuring like this you can expect to be repaying the debt for around 12 - 15 years if you are lucky....

I have seen a few cases where people have not looked at these statements (from bluechip banks not backdoor types), and they have actually been paying £13 and the bank too £14 in charges so their debt was increasing each month by £1.

Not all banks should be tarred with the same brush, but just remember why they are in business - to make money for themselves and the shareholders, they are a business!

You have to be strong and make a commitment to get out of debt over a set plan and then stick to it. After all you have had the funds and spent them so now you need to pay it back. Every penny you clear more quickly from the balance does count. There are some suggestions on the website to show ways to save money and get out of debt.


With a bit of strong will and taking charge you can do this and get rid of the debt, so take the bull by the horns and deal with it today, look at how to reduce and clear each set of bills, you will feel far better in the long run!

http://www.get-rid-of-debt.net