Reduce Debt The Easy Way

How to reduce debt is relatively easy when you follow a few basic tricks, and debt calculations, to help you see when your debt load is leading to the danger zone. Debt is not bad at all if you know how to use it. You should learn how to avoid the pitfalls to stay free of stress brought about by a creeping debt.

You should be aware that creditors use budgeting guidelines in the assessment and approval of credit applications. If your debt exceeds the parameters in their recommended guidelines, then you have a higher chance of your credit applications being denied. Use the following recommended budgeting guidelines (the same ones used by Financial Institutions) to review the items in your budget:

1. Housing should take about 35% of your budget;
2. Transportation takes 20%;
3. Other expenses 20% that includes:
- Mortgage or rent, taxes, repairs, improvements, insurance, and utilities;
-Monthly payments, gas, oil, repairs, insurance, parking & public transportation;
- Food, insurance, prescriptions, doctor & dentist bills, clothing
4. Debt payment takes 15%; and
5. Investments & Savings covers about 10%.

Get the ratio of your debt and your income. You should know the importance of your debt load to your overall financial status. Your debt income ratio is the percent of your monthly take- home pay that goes to paying debts. It can be calculated by taking the total amount you needed to repay your debts each month and divide it by your net take-home pay. Remember to include only the actual amount that goes to debt repayment in the calculation.

If you were able to pay off a credit card, don’t close the account right away because if you do, you are actually negatively impacting your credit score. The reason for this negative effect is in the calculation of the Credit to Debt Ratio itself. If you pay off a credit card, you reduce your debt, but, if you close the account, you are also reducing the credit limit you have, and usually by a higher percentage than you are reducing your debt.

Do not settle for the minimum payments on your credit cards. Paying just $10 extra a month on a credit card, above the minimum required payment, can cut your repayment term in half, if not more! So, make that extra payment, however small, do it monthly, and take advantage of the compounding effect of snowballing your way to reduce debt.



Debt Free Solutions is a debt consulting company located in Long Beach, CA. We have been in business for 10 years. We assist Americans across the U.S. to eliminate excessive credit card and other unsecured debt.

We utilize various programs and strategies to aid them in dissolving their debt in the quickest, safest, and most efficient method possible. We also analyze the risk factor. We structure our programs to drastically minimize the risk that is inevitable with all debt elimination programs.

We offer our clients much more than a debt settlement company does. The vast majority of debt negotiation companies simply settle your debts on your behalf with your creditors- nothing more.

On the other hand, we provide free services to significantly help to minimize the risks that are involved in negotiating with your creditors.

First, we offer a free, no-risk 10 day trial service. During our free trial, we negotiate with your creditors on your behalf to lower your interest rates. Also, we research to see if you have any old debts that you are not legally liable to repay. If, for any reason, you are not completely satisfied, you simply walk away. No commitments. No contracts.

Next, we provide a comprehensive credit repair service to all our clients. This is a $795 service that is absolutely free!

Also, we offer free attorney consultation (a maximum of five sessions) in case one or more of your creditors makes any threats.

Last, we provide a written guarantee that our clients’ creditors will settle for an average of 50% or more for all of the debts they attempt to negotiate.

Our services are competitively priced- and include the above free services!
www.debtfreesolutions.mobi
(800) 668-8090



It’s critical that you choose the best way to get out of debt. You need to weigh the pros and cons of each program to determine which program is best. Choosing the wrong program may cause a financial disaster!

http://nomoredebt.debtfreesolutions.mobi