How Much Debt Do You Have?

Looking at how much debt you have can be scary or pleasant, depending on your situation. MSN Money has a great tool that will help you calculate how mush debt you have.

Click Here To Calculate Your Debt

Knowing how much debt you do or do not have is very important. Knowing this information can help you to eliminate debt or can be a slap in the face for you to stop spending. On the other hand realizing that do not have as much debt as you thought can open your financial eyes to new investments or show you that you can put more money away for retirement. No matter your situation, knowing and managing your debt is key to financial freedom.

Removing Debt

Most people have either multiple credit cards, car loans, personal loans and not to mention a mortgage. Having many loans and lines of credit at the same time can be very dangerous. The money that you owe can get high very quickly. If you are in this position or you just want to pay off some of your loans quicker, here are some basic tips that you can do to help get rid of some unwanted debt and monthly payments.

• Focus on paying off the loan or credit card with the highest interest rate first
• Doing this will save you lots of money in the amount of interest that you pay every month. Most credit cards carry a interest rate over 13%.
• Apply all extra income to the highest rate loan or card that you are focusing on
• Make the minimum payment on all your other lines of credit, this will help you pay off the highest rate loan or card the quickest. Spreading your money out over lots of payments does not go very far.
• Stop spending
• Sounds easy but this is the hardest one to do. Always ask yourself, "Do I need this". Just by putting $30 on your card can cost you a lot more in the long run.
• Move what you owe to a lower rate or consolidate
  
• If you have high rates on your lines of credit look around for offers with lower rates. It is easy to find a credit card company that will give you 0% for a year or 2. This is a great way to really take down your debt, because you just went from 12% to 0%. You can also consolidate multiple loans that have a higher rate to a lower rate.
  
• Look for ways to increase your monthly cash flow
• This is always tricky. The easiest way to do this is review your monthly payments such as Internet, utilities, TV and many other forms of payments and decide where you can cut the fat. You will be surprised at where you can save. Take that money you save and pay off debt or invest it.
• Ask a professional
• It is never a bad idea to get your self a financial adviser. They can help you in your situation with investing and saving money. They can also create a custom plan for you and your family.
  

What to do with your tax refund????

Yes it is tax season, and hopefully you have already filed your taxes and are waiting for your refund. The question is what are you going to do with that refund no matter how big or small it may be. Tax refunds can help you knock out some debt that you have or give you some money to invest.



Paying off debt such as credit cards and car loans is always one of the best investments that you can make. The average credit card interest rates is 13.29%, getting rid of any debt at that high rate is a great investment. Paying extra money on car, personal or recreational vehicle loans always helps you to get rid of monthly payments and reduce your over all debt.

Even if you are not a skilled investor there are many areas where you can put some money that are safe and give you a much better return then your savings account. Most banks and credit unions offer 3 month, 6 month and 1 year CD's (certificate of deposit) that carry an average interest rate of 5%. These are insured bu the FDIC and offer a great return for a small amount of money.

What ever the amount of your return is, the temptation is to buy something new or go on vacation. Remember that this money can help you get a leg up on your finances or jump start you in paying off debt.