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Students – Proven Methods to Pay Off Your Debts, Loans and Credit Cards

Students, plan to pay off your debts, loans, and credit card debts as quickly as possible. Debt prevents you from gaining your financial footing and making progress towards your financial career and life goals.

If you're like the average American student, at the end of four years of college, you'll owe approximately $ 10,000 to $ 120,000 on the low end and $ 200,000 + on the high end. It'll take you some 15-25 years to pay off this debt. By the way, you'll probably want to get married, start a family, buy a home, save for your future children's college tuition, make investments and plan for your retirement. Without you do something now, debt will likely be your constant companion through life. That sucks !!

Not only that, but prices for everything is galloping out of control; so much so that your ability to do a lot of things is already severely limited. So, creating a way to pay off your debts, loans and credit card debts should be a high priority for you, even while you're still in college.

Although working at a job may provide you some money, in most instances this will just not be enough to help you achieve your debt reduction goal. Later, you'll find one opportunity that students just like yourself are currently using to reduce their debt and save money for their future even while still in school. Of course, you've got to start somewhere and since a job is not going to completely help you achieve your goal, where do you start and what do you do?

The following "to do" list will help you climb out from under the weight of your debts, loans and credit card debt quickly and systematically.

1. Immediately stop all unnecessary spending. Those items absolutely necessary to maintain yourself include food, shelter, and critical medical treatments.

2. Track your spending for one month to determine exactly where you are spending your money. When you see where your money is actually going, you may put a screeching halt to a great deal of your spending by virtue of seeing where it is going.

3. Create a plan to pay down your debts, loans, and credit card debts. Start by identifying how much debt you are carrying and exactly where it is, ie all debts where loans, car, credit card, housing, utilities, housing / health / dental / life / car and other insurances, travel, food, clothing, phone , medical expenses, entertainment, incidentals, etc.

Put this into a spreadsheet; it will help you track the total amount you owe, every required monthly payment, the interest rate, and when the last payment is due. Put everything on this spreadsheet so that you can track every dime you owe as well as every dime you make.

This is absolutely necessary; if you do not know what you earn and do not know what you owe you're likely to be in denial regarding your true financial condition.

4. Rearrange your spreadsheet so that your credit card debts with the highest interest rate are the most prominent on the sheet. Make paying these off quickly a priority. Once you've paid off this debt, apply that payment to the next bill in line (all the while maintaining paying the minimum payments on all other bills) as well as its own minimum payment.

Continue with this plan until all your debts are repaid.

5.Contact each creditor to make arrangements for your debt reduction. Although you'll negotiate a payment plan with your creditors be sure it is one you can afford. If at any time you can pay above the amount you promised, do so. This will not only reduce your debt more quickly but also create greater credit with your creditors. You may need them for a reference in the future.

6.Once you've done your diligence with each of your outstanding debts, develop a new budget and a written spending plan. If you do not know how to do this there is computer software and other resources that will help with this.

7. Some additional and necessary expenses will march through the next year. These include such things as car maintenance and repairs, unexpected medical care, vehicle license plates and other one-time expenses. Total these and dividend by 12 to determine how much money you'll have to set aside each month to cover these extras.

8. As said earlier, in order to help pay down your debt you may have to secure additional income. If so, plan appropitably to ensure you're not adding to your expenses. An avenue you may explore is legitimate work at home or work online opportunities.

Source by Estelle Dunomes

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