includes all credit cards, department store cards, gas cards, and all other cards that have a debt balance. List on paper or spreadsheet each card, the balance to pay off, and information where the payoff can be made
download this spreadsheet to help in this process
use our spec sheet below to shop your equity line among our network of lenders. Use the FREE quotes to compare terms and rate. You may shop lenders online and with your local bank.
Make sure your equity line balance is high enough to pay off your debts and maintain an open $15,000-$20,000 (this will allow you to use the line for emergency and paying off your mortgage later on)
use the bank equity program to manage your debt payoff program.
Note: the money saved by not having to pay your credit card balances each month is now discretionary income that can be used to pay down your BLOC. Do not spend this money for other items since it will defeat the BLOC payoff plan.
view how this option may work: see slide demo
use the spreadsheet to add up your personal loan debt. This includes auto loan debt, personal loans, liens, and any other related debt.
Use your BLOC to payoff those debt obligations if your BLOC has sufficient equity line balance. Again, the money saved from not having to make your monthly payments on your loans is now discetionary income that is used to pay down your BLOC.
download this spreadsheet to help in this process
setup a budget plan to avoid getting back into debt. Set spending limits on food, entertainment, purchases, and other monthly wants.
jump to our budgeting module for assistance
since credit cards can get you back into debt if you are not careful, close those card accounts that you don't need. Keep 1 or 2 card accounts open for family use.
If you find credit cards too tempting, you might consider pre-paid cards to help manage your spend. Pre-paid cards work and look just like credit cards and are accepted at all merchants that accepts cards. The difference is that you load pre-paid amounts to the card that can help avoid getting back into credit card debt.
see example how pre-paid cards can work for you |
credit cards such as VISA, MasterCard, Discover, and American Express. These cards are designed for you to make purchases and then repay the card with minimum payments. Lenders keep the minimum payment low to entice you to carry a balance where they can charge interest.
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cards from store brands furniture outlets. Many store brands will offer financing programs at zero interest for a designated time. The interest on the balance is deferred. If you pay off the balance within the designated time, the accrured interest is written off. If you don't, you will be subject to pay the accrued interest, current interest on the loan balance and loan balance over a period of time.
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loans secured by an asset that can be sold in the event you default on the loan. Mortgage are secured loans. So are auto loans that are secured by the auto value.
loans that are not secured by an asset. These are loans that are given to an applicant who has the capacity to repay the loan as set by the lender.
tax liens, divorce settlement payments, government liens and other obligations. |
