Ways to eliminate debt
Friday, January 15, 2010 12:22Use the financial reserve to pay off or reduce debts, but have the discipline in the future to build it again
I have spoken about “debt exchange” and “increased income”, now I will talk about how one person can make use of a financial reserve to pay off debts.
The first is the “use of financial reserves.” But how is it? There are people who have debts, but also have a financial reserve or pay a monthly amount to have a compensation in the future.
Examples: buffer; security thinking in the future; consortium to exchange the car; consortium flat; consortium of friends and relatives to make money, savings bonds and many others.
These are some ways to make money. But I wonder, what good have these reserves or pay monthly thinking about the future while using the overdraft to pay for those services and not out of it? Is it worth it?
The amount of interest you receive these types of applications or reserve is much smaller than the amount of interest paid on overdraft, or when paying only the minimum on credit cards.
I see that there is a lack of discipline, and with that the person without having to pay interest. And what’s worse, affecting your monthly budget.
Some people say to me: “But I cost that much to save!”. What is orienting to use this reserve to pay off or reduce debts, but have the discipline in the future to rebuild again this reserve.
This has happened too much in business with private pension plans. It pays to be deducted from the wages the value of social welfare and the whole month in overdraft or paying the minimum on credit card.
I see that many people, for financial reasons, end up having problems with productivity at work, relationships within and outside the company and even physical problems like insomnia, depression, etc..
Live in peace with your money and the debts are not trouble nobody.
