Are you in debt?
Do you have a personal loan, a credit card, a car or house loan?
Are you struggling to repay your debt and live the life you are aspiring to?
If you want to eliminate your debt then you need to take a little C.A.R.E. in managing your finances.
How do I take C.A.R.E.?
C.A.R.E. is an acronym I have developed for helping you to get out of debt in a most efficient manner.
It involves following four simple steps, which are outlined below.
- Cut off your supply lines: Stop using debt to fund your life style. Cut up credit cards, don’t take on any new loans and get used to the feeling of financing your life using what cash you do/don’t receive from your income. Cut off the addiction that has got you to the point you are currently at.
- Allocate cash to debt principle: Start with one loan and allocate any spare cash you have to paying down the principle. This will begin to reduce the amount of interest you pay. Reducing the interest paid while continuing to repay the same amount (or more) will increase the amount you are allocating to the principle, which will help get you out of debt faster.
- Remove one outstanding loan at a time: Don’t try and pay them all of at once with the extra cash you have, eliminate the first, then apply the amount that was being paid on that to the second. Once the second loan is paid off, take the money from the first and second and apply it to the third. Do this until you have paid off all your debt.
- Embrace new financial habits: Once you have paid off all your debt, continue to stay away from loans and other lures to spend money. Get into the habit of saving money on a regular basis. Put more effort into your career and aim for a promotion.