Stallion Habit 94- Power down Debt

This has really become one of the most important principles in my life. It is called power down debt or snowballing debt. Just like a snow ball gets bigger and bigger as it gains momentum, so can your debt be reduced using a similar principle.

First of all, you have to track your debt. Can you examine how much money you spend every month and identify at least $100 in money that is just wasted?

Now you take that $100 and put it towards your lowest pay off bill. Say you have a credit card with a $2000 balance, you would make your regular payment of $100 and take the $100 that you found and make a $200 dollar payment. Instead of paying this off in 20 months, you have cut this to 10.

Now that you have this paid off you take the $200 per month that you were paying, and you apply that towards your next credit card or bill. Let's say you have one for $4000 and your payment is $200. So you make a $400 payment and you pay this off in 10 months instead of 20.

Next you take your next bill of say $6000. You were making a $400 payment. You now take make a $800 payment paying it off in 6.2 months. You get the idea?

How many people just make the minimum payment and pay the maximum interest?

You can free yourself from bondage. Is a home still a good investment? You bet it is. And if you use this principal, you will have it paid off quickly. Then you can really start to build real wealth.

I look forward to working with you.

Thanks Burke Bennett

http://www.seidahohomes.com/

208 589 5599

burkebennett@hotmail.com