Tips for Free from Credit Card Debt

By admin, on December 12th, 2010

Question:
I am currently 28 years old, and unmarried. This year I will plan a wedding with my girlfriend. I also just moved jobs (not yet up to 3 months) and had revenue of Rp. 3,500,00 per month plus a bonus of approximately 500k per month. Total revenues of approximately 4 million dollars. I am currently boarding at a cost 950rb rupiah per month. I also have a vehicle a motorcycle worth 8jt dollars (the price of a type of motor used in the market)

Currently I have a very complicated problem. That is credit card debt. I have two credit cards. Each bill about 8 million and 5 million dollars to 3.75% per month interest and 4% for cash withdrawals.

In the past I have managed to pay off arrears to 0 dollars my credit card, but then increased again the bill and I even ‘rewarded’ new single credit card more than my credit card issuing bank. Until I was overwhelmed as it is now.

Because each month must pay the minimum balance credit cards, I always run out of money and eventually borrowed a parent or pull cash from my credit card. I also was not able to pay the insurance unit link in my bank that the amount 300rb per month. It was many months I do not save on my insurance unit link them.

I admit I am extravagant and very easy to spend money or use credit cards, just why it’s very difficult to reduce my lifestyle and save money. Please enlightenment what should I do? Is there a more effective way to pay off my debts are.

Answer:

Bids credit cards is tempting, as if a solution to our finances. But if we are not careful, we are trapped into credit card debt problem. Without felt the use of credit cards has reached the limit, while we can only pay the minimum amount each month. How do I cope with credit card debt? There are 2 steps that need to be done:

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The Key of Financial Management is Budgeting

By admin, on November 5th, 2010

I often get emails that it more or less like this:

“I wanted to invest as you mentioned in your article. But every month I finished all of their income just for shopping. How can I can leave my money in part to investment?”

Actually this is a very good question. This question represents the core of the science of personal or family financial management.
If you’ve read the Financial Revolution, you might still remember there are 3 steps taught by Tung Desem Waringin to achieve financial freedom:
1. Shop for less than the income (salary).
2. Invest the difference.
3. Reinvest the principal and interest compound interest investments for growth.
Here we see that the basic knowledge to achieve financial freedom is that you should be able to manage your expenses so that is always smaller than income. After wards, you will get some money to invest. If you fail in phase 1, you can not step into the next stages.

These steps are pretty much the same with the teachings of TDW, namely:

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Remain Stability Financial conditions

By admin, on July 22nd, 2010

Make a budget and get out of debt you need to do it seriously. Once you get out of debt credit card or other short-term debt investments which are neither, then you can start trying some of the following practical steps:

* Reserve Money
Always provide financial reserves at least as much as six months of income. This reserve could be a savings or other investments easily cashed in if needed immediately. When changes in circumstances, for example you get fired, then you will have sufficient funds for at least six months while you apply for a new job. Conversely, if you get a raise, save half of these salary increases.
* Large Debt
If you want to owe for investment, then try to count accurately the number of installments. Installment debt should not exceed 30 percent of husbands salary. If you are a spouse who works full, simply count the debt from the husband’s income alone. Then enter to the budget you have created to be evaluated whether it was reasonable for the debt or credit.

You can reduce borrowing costs significantly with a higher down payment. But you should be saving for that far in advance to include it in your family budget. Low initial cost burden could mean lower credit costs.
* Family Communication
Another success factor in conducting financial planning is good communication between family members.

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Preparing Budget

By admin, on June 8th, 2010

Creating a budget is not difficult to learn. One of them is to make a list of income and expenditure list. Then ensure that expenditures not exceed revenues, as the saying goes large pegs instead of the pole. By making the budget will make your life more enjoyable and bring satisfaction. What can you include in the budget?

* Income
The first you need to make is a list of revenue. Generally that will go to this list are salary, interest from savings accounts, deposit interest, and so on. Record only the regular income that you would get each month.

Avoid entering uncertain income or non-routine within your budget. Some income is uncertain such as overtime pay, bonuses, prizes, commissions, even though allowance. The financial consultant has warned that creating a plan based on uncertain sources of income that can make your debt. However, if you occasionally get a revenue is uncertain, such as overtime pay or bonuses, then you can choose to use the money for example to treat yourself and your family, travel, or give a donation.

* Expenditure
Compiling a list of expenses are not as easy as making a list of revenue. It may be that you attempt to record every expenditure to see the financial waste that occurs. However, we suggest you can make a list of monthly expenses if you know your shopping habits. Some important things that must exist in the list of expenses such as basic necessities. This includes food, housing, and clothing.

Do not forget to include periodic routine expenditures such as spending per three-monthly, as of mid yearly, annual and other periodic expenses. Examples for the payment of home insurance, vehicle tax or income tax. However, to put it in the monthly list, you need to divide that amount by the number of months suitable.

Then for each expense, you make weighting or priority scale. If you find your expenses amount greater than or equal to income, then you can eliminate or delay some expenditures which you have registered. It is helpful if you divide every expenditure by weighting the absolute necessity, the needs of the doubt, or simply a luxury that want to own. This will be helpful, if at any time your income is reduced because of changing situations. You can quickly get rid of some who still doubt the need or a luxury only.

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