Wednesday, August 22, 2012

Paying off debt

I am not a financial expert, I am still on the process of learning how to be financially literate. After all of the roller coaster, I had with my husband in terms of our financial aspect I have learned to appreciate and give back not because I am financially capable now but because I know how it feels to have nothing. Though part of our culture was even though you help people in so many ways but they still don't know the word appreciation and satisfaction. That is why I am trying my best to use this blog as a venue to impart to them what I have learned in terms of financial aspect. I wanted them to experience the overflowing of blessings I have now not only financially but in all aspects of life and I wanted them to be financially independent just like us. Though money is not a big factor for happiness (how I wish everyone should know that) but it is one component or aspect in our lives to be worry free especially in our retirement day. According to one Chinese proverb "Give a man a fish and he won't starve for a day. Teach a man how to fish and he won't starve for his entire life." The last post, I mentioned about How to pay off debt, that we need to negotiate and it was one important thing to do. Now I am going to share to you another strategy of paying off debts. Last time my husband attended a seminar about financial literacy in their company and one of the topic was how to pay off debt properly. I told him if we just knew this earlier we were able to pay off our debts more easily, but I think God has a reason why only now that we manage to know all of these things, maybe now is just the right time for us. Below you will see the steps by steps strategy of paying off debts.

* Step 1. Self Discipline & Commitment before you even start
* Step 2. List down ALL your Debts
* Step 3. Identify the MINIMUM Monthly Payment required for each debt.
* Step 4. Compute the Payoff Months.
* Step 5. Determine the Payoff Priority.
* Step 6. Create a complete Payment Tracker Spreadsheets.
* Step 7. Be sure to religiously follow step 1. (Self Discipline & Commitment).

There you go next post I will try my best to discuss one by one in a simpler manner, I just hope each of us will learn from the mistake of others, of our forefather, of our ancestors. Try to analyse Bill Gates quotes, nowadays with so many resources it is impossible not to learn. Happy savings and have a fruitful life.

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