Debt Elimination Without Bankruptcy

Debt elimination without bankruptcy is possible! Here is how you can eliminate debt and save your credit rating at the same time.

Even if your credit cards are maxed out and you have a huge mortgage to pay off, you can still get rid of all your debt in about five to seven years - and begin rapid wealth-building - without sacrificing the things that matter most to you!

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Debt destroys wealth! Perhaps you have experience the devastating effects of having too much debt. It crimps your retirement lifestyle. You can't do the things you would like to do. You can't live in your dream home. You can go out to eat as often as you would like. You can't travel where and when you would like to go. It brings tears to your eyes.

Debt Elimination Without Bankruptcy - The Benefits

Imagine what debt elimination without bankruptcy could do for you. First of all you would save your credit rating. When you pay your debts off on time, your FICO credit score will rise. You will need an excellent credit score in order to purchase your dream home.

When you become debt free you will be able to:

  • Retire where you want.
  • Live in your dream home.
  • Have cash to invest.
  • Travel where and when you want.
  • Have cash to pay for everything.

So how does debt elimination without bankruptcy work? Can you eliminate your debt on what you already earn? The answer is YES!

Debt Elimination Without Bankruptcy - The Plan

In order to eliminate your debt you first MUST refrain from charging anything more to your credit cards. You MUST avoid buying any major purchase like a car. It would also be advisable to cut up all your credit cards. At least lock them up in a safe deposit box.

If you choose to use a credit card for convenience, you MUST pay off the charge immediately upon receipt of your bill every month. Failure to do so will only make your situation worse.

Let us assume for example, you have these debts.

  • Mortgage - Balance $200,000 - Payment $1,073.64
  • Car 1 - Balance $15,000 - Payment $500.95
  • Car 2 - Balance $5,000 - Payment $396.02
  • Credit Card 1 - Balance $938 - Payment $30.00
  • Credit Card 2 -Balance $1,316 - Payment $20.00

The secret to eliminating your debt is to pay off all of your debts one at a time. First, make the minimum payment on all of your debts. Then select the debt with the smallest balance and pay as much as you can against that debt.

In this case you will chose Credit Card 1. It has a balance of $938. The interest rate is not important, as you will be paying them off as fast as you can. You will need to pay an extra amount, say $300.

Each month you pay the minimum payment of $30.00 plus the extra amount of $300 for a total $330 against your bill for Credit Card 1. The idea is to pay off this bill first. It is the most achievable. This will give you encouragement to stick with the debt elimination without bankruptcy plan.

Once Credit Card 1 is paid off, you would then take the $330 payment you were making against Credit Card 1 and ADD that payment to your payment of $20.00 for Credit Card 2. Your new payment against Credit Card 2 will be $350.

Keeping up this momentum will accelerate your debt elimination.

Once Credit Card 2 is paid off, you will attack the next debt with the lowest balance. That will be Car 2. The payment on Car 2 is $396.02. Add the $350 payment you used against Credit Card 2 to the Car 2 payment of $396.02 for a new payment of $746.02. This will pay off your Car 2 in about 7 months. You now own Car 2 debt free.

Your debt elimination without bankruptcy plan is working! By now you can see you are making progress. Not only are you eliminating your debt, your are creating wealth. Your net worth is increasing.

Once Car 2 is paid off you can begin paying off Car 1. Take the $746.02 payment you made against Car 2 and add that to the payment of $500.95 for a new payment of $1,246.97. Car 1 will be paid off in about 13 months.

Now you only have a mortgage left to pay off. Again, add the $1,246.97 you paid on Car 1 to your mortgage payment of $1,073.64 for a new payment of $2,320.61. Your montage will be paid off in just 107 months instead of 360 payments.

The key to this plan is too add an additional amount to the payment for the debt with the lowest balance. In this case we used the initial amount of $300. Perhaps, you feel you don't have an additional $300 to use.

In this case you will need to trim a few luxuries from your monthly budget. Or, you will need to get an additional part-time job or start a part-time business. If you need a few business ideas visit

So you see debt elimination without bankruptcy is not only possible, it is the best way to go!

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