Debt Repayment Plan
Devise Your Own Debt Repayment Plan
Your repayment plan must be based on real figures.
After you've allotted money for all your expenses, including
such categories as clothing, entertainment and health
(which might include payments for your yoga or gym class),
you’ll be able to determine the best repayment plan
for you.
Remember, you must commit to the idea that you only
have so much income, and you must pay your expenses
out of that income. It may mean cutting back on certain
unnecessary items. But you must determine what you have,
and acquiesce that you have nothing more with which
to work.
One fair and rational way to repay is this:
- Figure out how much money you have coming in.
- Track your expenses.
- Create a realistic spending plan.
- Determine how much you can afford to pay, in total,
toward your debts each month.
- List all your creditors and the amount you owe
each one.
- Add up the debt.
- With a calculator, figure out each creditor's share,
or percentage, of the total. Divide the amount you
owe each creditor by your total debt and that gives
you that creditor's percentage.
- Repay your creditors proportionally. Each monthly
payment to each creditor will be figured on the basis
of the percentages you worked out with the formula.
For example: if your Visa's debt is 40% of your total
debt, then pay Visa 40% of what you can afford to
pay each month.
- Stick to the plan.
The key is to your repayment plan success is to stick
to the plan. Don't be pressured into paying more than
you can afford or forced into paying off one aggressive
creditor over the others. Most legitimate creditors
will be placated when you prove that you are taking
steps to repay their debt within your means.
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