A New Twist To Quitting Debt Fast
While you're waiting for a lotto win to bring you a windfall, why not get started on getting rid of your debt permanently.
While it would be nice to imagine that your future lotto wins will give you the good life (and maybe a classic Ferrari) very soon, no one knows when that's going to be - even me with my magnificent system! :-)
This is something you can get started on today, and benefit for the rest of your life.
Throughout my posts I emphasize that you need to take ACTION on everything you do. This is just as important in your day-to-day life as it is waiting for future wins. Always work on the determinable... the stuff you have control over right now. And surprisingly, quitting debt is one of the easiest to succeed in.
Most of us have debt, and most of us want to quit it fast. Not only does debt take a lot of fun out of life, it also prevents you from taking vacations when you want to, giving gifts to your family when you want to, and buying some luxury items to make life fun.A while back in one of my Lotto-Tips newsletters, I revealed my method for reducing debt fast, but I've since discovered a new twist that makes it even better.
Here's how it works...
In the past I've recommended that you systematically pay off the smallest debts first. This still applies, but you can now do it in a more efficient way:
- Make a list of all the consumer debt you have. That doesn't include food, transport or day-to-day expenses. List the total of each debt.
- Now, beside each item write down your monthly payment.
- Divide that payment into the main total for each. This will give you a ratio that prioritizes your debts far more efficiently.
----------Loan Bal. -----Monthly -----Ratio
House ---$100,000 -----$1500 -------66
Car ------$12,000 ------$500 --------24
Visa ------$7,000 -------$350 --------20
Loan -----$5,000 -------$200 --------25
----------------------------------------
--------- $124,000 -----$2550
To do this, you'll need a little extra income...
If you're like most people, you'll have some money over after the monthly payments. If you don't, look for ways to increase your income by reducing some expenses. Or better - increase your income. I've suggested that you become an affiliate for the Silver Lotto System... this will bring you in around US $17 a sale. A few of these sales a week will make quite a difference to your income. One of my top affiliates earns over $30,000 a year.
Now choose the payment with the lowest ratio. In this example above, it's the Visa card with a ratio of 20. Use your extra income to pay that card off first. For example, you might find you're able to pay $600 a month in total off your Visa. That's an extra $250 a month. This means that the card will be fully paid off in around 11 months.
Here's where it starts to get better. Now take that monthly Visa payment of $600 and use it to pay off the next low ratio item... in this case the car. Because of the extra payment, you're now able to pay $1100 a month off the car, which means that it will be fully paid off in just a further 6 months!
Here's why...
Because you've been paying the car off at a regular amount already, it has a reduced balance of $6,500 after you finish paying the Visa card. So now paying the car back at $1100 a month lets you pay it off completely in 6 months.
Now that you don't have the car payment, you have a total of $1600 a month free to apply to the next low ratio.
On that goes, rapidly speeding up until at the final loan - your house - you have over $3000 a month to apply to that amount. It will take only a little under three years to pay back that balance.
Now you're completely debt-free, and altogether it's probably taken you less than 5 years! Most people are amazed at the speed at which it works.
There are two success secrets here...
SECRET #1: Once you've decided you are going to pay down your debt, don't spend any more. Any further spending will just increase the time it takes.
SECRET #2: Daily, visualize the life you going to have free of debt. This is important because it gives you the incentive to carry on when times are tough. Also reward yourself after each major success. Go out to dinner, buy or sell something special... just make sure that you celebrate at each stage.
If you've taken the time to read and work out this system, you are 99% ahead of the rest of the population who will never be free of debt for most of their lives. Enjoy!
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