DEBT free IS THE WAY TO BE - personal finance

Black Enterprise, Oct, 2000 by Leslie E. Royale

How Much Do I Owe?

In order to get out of debt, you need to know how much you owe. Making a list will give you a clear picture of your personal financial situation, allowing you to begin the process of managing your finances in a way that serves your needs. This is an important step to living debt free.

                   Interest              Monthly    #Remaining
Debt Owed            Rate     Balance   Payments     Payments

Car                   15%      $6,400     $320.00       20
College Loan 1         8%      $9.200     $230.00       40
College Loan 2         8%      $5,290     $196.00       27
Mom                    0%      $2.500      $50.00       24
Ace Hardware          18%        $420      $70.00        6
Levitz Furniture      17%        $150      $75.00        2
Circuit City        19.5%      $1,875     $125.00       15
TOTAL                 --      $25,835   $1,066.00       --

* It's helpful to know the exact payoff dates of loans. However, it's more difficult to calculate the payoff date for credit card debts because minimum monthly payments go down as the amount of debt is reduced. In addition, interest varies because it's calculated based on the balance.

Reprinted with permission of the publisher, from Life Without Debt (c) 1995 Bob Hammond. Published by Career Press, Franklin Lakes, N.J. All rights reserved.

Debt-Free Key: 10 Steps For Coping With High Credit Card Bills

1 Develop a plan of action.

2 List all of your assets and resources. Include savings accounts, money market funds, stocks and bonds, 401(k)s, and home equity credit lines.

3 Know what you owe. Rank your credit card debts and loans from highest to lowest by the annual percentage rate of interest.

4 Compare high-cost debts with lower-cost ones. Concentrate on paying off the high-cost debts first.

5 Switch to credit cards with lower interest rates.

6 Compare fees.

7 Know when your cards' grace periods begin and end.

8 Watch those minimum monthly payments.

9 Pay off some debts with assets such as the money in a savings account.

10 Make credit work for you. Consider taking a low-interest loan from a credit union, borrowing against your 401(k), or getting a home equity loan to pay off higher interest rates.

ADAPTED FROM Life Without Debt (C) 1995 BOB HAMMOND. PUBLISHED BY CAREER PRESS, FRANKLIN LAKES, N.J.

Websites Offering Credit Counseling

American Consumer Credit Counseling          www.consumercredit.com
The Center for Debt Management        www.Center4DebtManagement.com
Cheapskate Monthly                        www.cheapskatemonthly.com
Consumer Credit Counseling Service              www.debthelpnow.com
1st Consumer Credit Counseling                   www.payonlyone.com
  Alliance
Genus Credit Management                                www.nccs.org
Myvesta.org                                         www.myvesta.org
National Foundation for Credit                         www.nfcc.org
  Counseling