Do you owe a lot of money? If you own money in quite a few places it is a good suggestion to get the most expensive debt paid out first.
So how do we understand which debts are the most pricey? Figure out what you pay in interests on your different loans – loans with the highest interest rate are the most expensive loans regardless of loan size.
That said, it’s also important to find out which of your loans that are tax deductible. You may with no trouble have a loan that has a high interest rate but it might be tax deductible. So this should also be included in the calculation.
Here is a good approach, you can use to get out of debt. You begin to pay your most expensive loans off with as high a monthly payment that you feel you can handle. When your most expensive loans are paid, you carry on with the second-most expensive.
The money you used to pay the most expensive loans with, you are using now to pay the second-most expensive of. And so it goes until you all your loans are paid off. Seeming too simple, this approach actually works – it worked for me anyway.
Start investing. Once you have paid your costlyloans, then it is time to start investing. How much do you earn in interest on your bank account, 1/2%, 1%? It is probably not much more than 1%.
There are several ways where you can get more out of your money than to have them standing on the bank account. More and more people are beginning to take an interest in the stock market, and it is a sound development. There are so many different possibilities to earn money by putting your money into equities, even if you don’t have a lot of money to spend.
When investing on the stock market, it is important to remember, that there is always a risk – don’t trade stocks for more than you can afford to loose. The relationship between risk and profit is simply: the more risk you are willing to take, the higher profit potential. There are many good investment guides for newbies – free – in the Internet.
Need guidance about how to get control of your own economy and start building a nest egg of you own using a desktop stock ticker, then take a look at the website of Felix B. Hardy. Felix is a long time investor and he know a lot of easy tricks to get rid of debt quick using desktop stock tickers