Steps to Take to Reduce Indebtedness
Home Tell a Friend! Contact ICFE Link Exchange Search ICFE Subscribe ICFE About the ICFE
ICFE News Releases ICFE in the News Children and Money Financial Education Personal Financial Counseling with Paul S. Richard, RFC Credit Card Tips Credit File Correction Mending Spending Links and Resources Order Options
ICFE Provides Financial Education, Continuing Education Credits, CEUs, CEs, Free Credit Repair, Bankruptcy Education and Financial Planning for All Age Groups.
 
Financial Education Table Of Contents
Dealing With Creditors ] How to Make Present Income Go Farther ] Rising Housing and Energy Costs Guidelines ] [ Steps to Take to Reduce Indebtedness ]

Steps To Take To Reduce Indebtedness

Excerpted from the "Money Instruction Book"
by Paul S. Richard - ICFE Executive Director

  1. Begin immediately. (Getting started can be the biggest obstacle.)
  2. Make up a written plan of action.
  3. Take on no new debt including a consolidation loan.*
  4. Close credit card accounts by returning charge cards to issuers.
  5. Maintain written accounting of all income and outgo, especially cash.
  6. Begin collecting receipts to raise awareness.
  7. Closely examine all expenses looking for ways to increase value.
  8. Put all extra income towards paying off debts.
  9. Start doing things yourself and do not pay for services.
  10. Make all necessary sacrifices to eliminate debt.
  11. Sell items that are losing value especially those with debt owing.
  12. Make getting out of debt a family affair.
  13. Contact creditors in writing to keep them informed and if necessary get temporary reductions in payments.
  14. Utilize cents-off coupons wherever possible. Send in for rebates.
  15. Review spending Practices and habits, begin comparison shopping, etc.


* A consolidation loan may be workable ONLY if the loan interest is less than the interest on the debts to be retired AND paid- off charge accounts are closed AND the extra cashflow is put towards paying off the consolidation loan even faster. Otherwise in a year or two many people who only pay off and not close accounts are often paying off a consolidation loan and also new credit purchases.


Back Up

 
Home ] ICFE News Releases ] ICFE in the News ] Children and Money ] Financial Education ] Resource Center ] Credit Card Tips ][ Credit File Correction ] Mending Spending ] Links and Resources ]  [ Online Store ]

 

Copyright ©  1997 - by Paul S. Richard
and the Institute of Consumer Financial Education, All Rights Reserved.
View our
Privacy Policy Our Terms and Conditions

Institute of Consumer Financial Education
PO Box 34070
San Diego, Ca 92163
Paul S. Richard, Executive Director
Phone 619-239-1401

FAX 619-923-3284

Questions for www.financial-education-icfe.org Click to go to Website Contact Us or 
Website Design Donated by Desgn School Programs