Friday, 4 November 2016

Getting Out of Debt

"Utang, Pagkakuha ng Suweldo, Bayad Utang.
Pagkabayad Utang! Dahil Kulang Ulit,
Utang! Pagkakuha ng Suweldo, Bayad Utang.
Pagkabayad Utang! Kulang! Paulit ulit -lang.
                                                           - Chinkee Tan

Unending debt cycle. Getting out of debt is the first step in achieving financial freedom. You should work out on your debt status before starting to invest in different financial instruments. Probably you will say that there is a good debt and bad debt, Yes but debt is debt.

It can start at a very small amount of loan or credit card consumption. This debt can build overtime then it will become a mountain that cannot be move. This is a place where everyone fall into trap.

Here are my tips on how to handle debts:

First, Pay all the debts slowly but surely. There is no point of adding additional debts if you still have an existing one.

Second, Look for a lower interest rates. If you have an existing debts, try to look for a bank that can purchase the loans and get a lower interest rates.

Third, Pay the highest interest rates debt first, especially those compounding every month or year.

Fourth, Don't be late on any payment schedule because interest and penalty will only add up to your existing loans.

Fifth, Use credit card only for points or miles. If you don't know how to use credit card properly, then it's time to cut it off.

Those are very practical tips on getting out of debts, see you on Financial Freedom ladder.

Sincerely yours,

Jonathan I. Ruiz CPA


  1. This comment has been removed by a blog administrator.

  2. Thanks for sharing, nice post!

    Chia sẻ các bạn địa chỉ mua máy đưa võng giá rẻ uy tín cho bé, và tìm hiểu về võng điện cho bé, và trang để tìm hiểu thêm về máy đưa võng cho bé.


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