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3 simple steps to reduce debt

Welcome to Professor Savings.com

We teach finance basics.

Hi, I’m your host today Rayfil Wong.

3 Steps to Get out of Debt.

After all, we can sure benefit from being financial healthy.

#1 Know exactly what you owe. It can be so hard facing our debts

so get together all your credit card statements, student loans, and mortgage identify the interest rates and how much balance is owed from each account.

Our biggest tip is to check your online  debt balance daily so you will be more careful of your spending.

Next..

Identify certain spending habits that can be eliminated for instance, examine your expense and identify what you can cut.

For instance,   if you are spending $10 daily on breakfast ask yourself. Can you cut it down and treat yourself to breakfast at a restaurant once a week?

But the big expenditures are actually big ticket items such as a $2000 computer. I

In this case, can you consider a refurbished model from the manufacturer.

At Professor Savings, we devised a general rule that helps you decide whether you can afford something

 “if you can buy three in cash, then you can afford it!”

For instance, purchasing a car brand new at $30,000. Do you really have $90,000 in cash?

If not, consider buying a second hand used car at $20,000 helping you save $10,000.   

Please consult a financial advisor if you have multiple loans that need a more complex strategy .

Take note, the so called good debt are student loans that can possibly enable you to increase your salary.

Please subscribe to our channel if you want to learn more on finance basics.

Professor Savings signing off.

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