The third step in the 7 steps to wealth is minimizing your debt.
It’s been a while so the first step is to equip yourself with the right tools, while the second step is to maximize your income.
I’ve read and studied how spenders can save money avoiding that daily cup of coffee or not buying gum in the grocery checkout line. Numbers don’t lie and I’m sure minimizing those debts will help. It sounds like a great place to start if you’ve tackled the real issues.
The problem is that most people look for the small ways to minimizing your debt while paying excessive fees and charges in other financial matters.
Minimize your debt the right way in order to see any true progress. This is crucial to seeing a real change in your monthly cash flow. There are two simple areas to focus on.
Stop the bleeding!
You cannot get out of debt while you are adding new bills and expenses at the same time. This isn’t rocket science, however it is a regular oversight in most situations. Stop and check your accounts to see where fees are leaking out. The bleeding can be identified in several areas.
- Late Fees on household bills can average $15.00 per bill per month.
- Utilities: 1.5%-2.0%
- Charge cards: $15.00-$30.00
- Mortgages: $50.00-$150.00
- Banking Fees: $8.00
- Over draft Fees: $37.00
Carrying Charge Card Balances challenges minimizing your debt!
- Interest Rates: 21%
- 90 days same as cash
Creating a debt elimination plan is a must in minimizing your debt.
Pull your credit report and compare the credit report bills owed to your daily bills mailed to your house. Create a master bill list and strategically begin to wipe out the most manageable bills.
Part of your strategy should include contacting any debtor that has a balanced owed and negotiating reduced fees. The world is restructuring and fighting to collect past due funds. More now than ever the potential to have fees reduced is on your side.
Summary:
Creating a laser focus on minimizing your debt is a core strategy to creating wealth and specifically a mindset of prosperity. You have to physically control your spending habits as well as your core monthly spending. There are always opposing energies in life and the opposite of physical is mental. In financial matters, the mind is critical to a successful campaign towards minimizing your debt.
- Stop the Bleeding
- Pay your core bills on time
- reduce/eliminate charge card balances
- Negotiate fees & charges
- Create an elimination plan
Become a member and get a detailed plan that walks you through minimizing your debt like the wealthy!
Leave A Comment