Getting Out of Debt on a Teacher's Salary

Series Summary

Credit is the provision of resources by one party to another party in which the second party does not reimburse the first party immediately, thereby generating a debt, and instead arranging either to repay or return those resources at a later date. The first party is called a creditor, also known as a lender, while the second party is called a debtor, also known as a borrower. Common forms of consumer credit include credit cards, store cards, motor finance, personal loans, retail loans and mortgages. In this free video series, the owner of a debt negotiation company provides tips for getting out of debt through debt consolidation. Find out how to get out of vehicle debt, how to consolidate all debts, and how to get out of debt with a low income. Learn about good debt, settling debt, and building credit. Discover how to manage money efficiently with help from these free videos.

Video Transcript

"Hi my name is Peter Repak I'm the owner of Clear Financial LLC, we're a debt negotiation company. The question is getting out of debt on a teacher's salary. Well that's a rough question, because yes you can do it but you have to be extremely smart about it. Not that means that you cannot do it, but what you want to do is you want to ask first like a company like mine; what you should do exactly. Depending what is your situation. Every single individual has a different amount of debt. If the debt is very excessive then you definitely have to talk to a professionals about it. If it's not excessive, you are not that much into debt, then what you can do is called the debt roll down method. The debt roll down method consist of a very very simple way. What you do is you take all of your credit cards, and when you took all of your credit cards you take a look at what is the lowest amount of debt that you owe on that particular card. What you do at this time you pay on everyone of those cards the minimum payment only, but you take one which is the lowest amount of debt that you owe on one of the cards and you take all the money that you can spend to get rid of that card. Once you have paid that card off whatever the minimum payment actually is on top of it that freed up from your payment. What you do you attach it to your next amount. You pay off your next card and you pay off your next card, you pay off your next card, and this way you can pay off your debt in a very very fast manner. Much much faster than how the credit card companies want you to do that. However, you have to have discipline to do this. You don't just spend the money that all of a sudden just freed up from this minimum payment, what you do is you simply do discipline and you pay off every card one by one.You attack the small one first and then you go to the larger ones. My name is Peter Repak, I'm the owner of Clear Financial LLC thank you for watching."