Get Started Now! Get Your Credit Repair Do It Yourself!!

EXTENSION CORNER: Choosing an approach to debt reduction – Lifestyle – Gadsden Times

New IdentityTheft Scam

While the current economy has admittedly affected people differently, one common theme has been that getting out of debt is now cool.

At one time, late-night television junkies were the only ones exposed to all of the get-out-of-debt television ads. However, debt elimination ads now seemingly target everyone — debt negotiation, foreclosure relief, debt settlement, bankruptcy relief, credit repair; the list goes on and on.

Alabama Extension Human Sciences educator Dr. Theresa Jones offers some debt reduction strategies that you can put to practice quickly, easily and on your own.

Ways to Reduce Debt

Ultimately, most efforts aimed at eliminating debt can be summed up in two primary goals: time (getting out of debt as quickly as possible) and saving money (paying as little in interest as possible). While there are numerous ways to work on these goals, here are some simple steps that will provide dramatic results.

• Level Payments: Think of this as the anti-credit card payment• Credit card companies allow you to reduce your required payment as your balance decreases. A level payment suggests that you pay your current monthly payment (whatever that is) steadily until the debt is paid off.

If you have a balance of $1,500 with a 15% interest rate and make the minimum payment of $150, this payment equals 3% of your balance• It would take 156 years and 5 months to pay this debt and you will have paid more than $3,400 in interest• This is an example of decreasing minimum payments.

If you have a balance of $1,500 with a 15% interest rate and make the payment of $150 until the debt is paid off, it would take you three years and eight months and you would pay $1,500 in interest.

• Power Payments: PowerPay is a systematic way of repaying debts that was developed more than 15 years ago by Utah State University Extension. This system of debt reduction is commonly referred to as a snowball method of repaying debt. To use this method, make level payments on all debts and accumulate no new debts. As one debt is paid off, that money is rolled over to a new debt until all is paid in full.

A benefit of this program is the flexibility to decide how to apply the extra payments (as debts are paid off). Should you pay the highest interest rate to save the most money? Or should you pay off the lowest balance, which may enable you to stick with your debt reduction plan better? The Power Pay program will give you each scenario, and you can choose the method that works best for you.

The time and money saved using this system of repayment is often breathtaking. Utah State has made its PowerPay calculator available for free on its website, https://powerpay.org.

For more information on this and other topics, visit www.aces.edu or contact the Etowah County Extension Office.

Upcoming Extension Programs

• 2020 Beef Cattle Conference: March 13-15 in Auburn; conference will highlight current topics related to beef production that are relevant to both producers and food animal veterinarians; those attending can interact with other beef producers, veterinarians and members of Extension’s Animal Science and Forages team; registration fee is $75 for adults and $25 for ages 8-18 through March 1, $100 and $50 afterward; https://bit.ly/2tXXuUc

• A hemp production meeting is set for 8 a.m. until 1 p.m. March 27 at the Sand Mountain Research and Extension Center. Registration fee is $25. Contact the Etowah County Extension Office for more information.

• ServSafe Food Safety Certification Classes scheduled for Etowah County in 2020 are Nov. 30 and Dec. 2. All classes are from 9:30 a.m. to 4:30 p.m. at the Etowah County Extension Office.

For more information on this topic and many others, contact the Etowah County Extension Office, 256-547-7936 or 3200 A W. Meighan Blvd., Gadsden. Amy Burgess is extension coordinator for the Etowah County Extension Office.

Source: on 2020-03-06 09:26:15

Read More At Source Site

Add a Comment

Your email address will not be published. Required fields are marked *

69 + = 70