Be Debt Free and Build up your net worth!

When one has cleared all their debts, a new beginning has come and start building your net worth. Here are few tips to accomplish this:


Keep away from credit cards: Use cash, check or debit card whenever possible, stick with a budget.


Save More: Save as much as possible, a minimum recommended saving and investment will be 10% of your earnings.


Set-aside funds: Open an account and try to build up $3000-$4000 for various purposes including taxes, insurance, auto and home repairs, appliances, furniture, etc.. Ensure this is automatically detected from your checking account.


Create an emergency fund: For emergency purposes like job loss or illness, try to set aside four months of wages. One can invest in mutual funds with automatic deductions from your checking account.


Start Saving for Retirement: One cannot merely depend on social security alone, you’re your employer’s 401k, or open an IRA to start saving money for your retirement. A weekly contribution of $25 @ 10% interest earns $205,000 in thirty years.


Look after your family: Buy a “term” life insurance policy worth five times your income, a health-care policy covering your medical needs, a disability policy paying 60-70% of your income, an auto policy paying at least $100,000 per injury, $300,000 per accident, and $50,000 in property damage, fire, and theft, a home owner’s policy for 80% of your home value.


Invest in a home: Home investment is one of the best investments; value and equity increase, interest and property taxes are tax deductible. More than two thirds of all Americans own their own home.


If you or anyone you know has trouble managing debt, contact the nations leading debt management firm debtfreeafterall.com, who specializes in debt settlement, debt negotiation, and debt reduction.




Written by Naz

Which Credit Card to Pay Off first?

Consumers are often confused when they have lot to pay and have several cards to take care. You’ll get a variety of opinions depending on which debt guru you talk to. Each one has its own merits and demerits.

Paying off the card with the smallest balance:
This can psychologically boost to knock-out at least one card and offers victory that could help you motivate to pay off the debt on other cards. But if other debts are mounting at higher rates, one would wind up paying more in total debt.

Paying off the highest-rate balance first:
This can be the most recommended plan, since you retire the costliest accounts first. But, if this takes you longer to achieve your first paid-off account, then it may not be the most helpful, especially for your credit score.

Paying off the balance that’s closest to its limit:
If one or more of your cards are maxed out, then this becomes an excuse for your creditors to raise your interest rates-both on the affected accounts and on any others you might have that have a universal default penalty. Paying down these high-balance debts can help your credit score and ultimately contain your total interest costs.

Paying off through Debt Settlement Companies:
If you have difficulties in choosing the above methods you can contact a professional Debt settlement company such as www.debtfreeafterall.com and they will be able to help you accomplish a debt free life.

Written by Naz