Get Debt Relief With Dateline Paying
Allright, you have lots of debt and your creditors are hounding you. How do you cope with it and get debt relief without having a nervous breakdown? Use this simple guide for Dateline Paying.
Dateline paying is a simple way to pay oldest bills first, based on the due date. The dateline shows you how far back in time the dates of your past due bills go. Yes, credit card debt is treated exactly like any other past due bill. Here are a few basic steps to this strategy that anyone can do.
1 - List out credit card debt and past due bills. Use a report from your accounting program or a spreadsheet of some kind and sort them by due date. Make sure you include a bill for each credit card or line of credit that is more than the minimum payment.
Make the credit card bill for the amount you want to try to pay over the few weeks before the payment is actually due. For example, if your minimum payment is running at $400, put a bill in for $600.
2 - At the close of each business week, carve off 15% of the income and use this to pay down past due bills and debt. This leaves you 85% to pay current bills to keep the doors open, the staff in place and the telephone ringing to make more money.
Be sure and use part of the 85% for promoting your products and services to keep customers buying, and stash away a bit as a cushion to handle emergencies.
3 - Utilize the 15% to pay the debt by dateline - oldest bills first. Make sure to use part of the money to pay suppliers and part to pay credit card debt.
4 - Pay a bit towards credit card debt every week using on-line paying.
What for? Because it stops the daily interest compounding for the rest of the month on that amount you paid. This can save you a lot of interest charges over time. This tactic also saves you from getting hit with late charges for making late payments. Additionally, it eliminates the scrambling to come up with a big chunk of cash to pay the credit debt in the week the payment is actually due.
5 - Pay suppliers’ past due bills - oldest bill first. The only exception is a supplier who refuses to ship more product that you need to produce more income, or one who is threatening legal action. Those are dangerous situations that have to be handled immediately.
6 - Work out how to increase your income so that you have an increasing amount of money to utilize to work this strategy of dateline paying.
Systematically working to pay both ends of the dateline, 85% to current operating expenses and 15% to past due bills, gradually moves the dateline closer to present time till you are current on your bills and out of debt.
You can watch this dateline paying strategy working for you by making a graph of the total debt you owe and update the number each week so you can observe the total of the debt coming down. Not only does it help you confront the debt you created, it acknowledges the effort you are putting into getting the situation handled for good.
Sandra Simmons, President of Money Management Solutions has years of experience helping business owners and individuals manage their money to achieve financial freedom. Claim your FREE REPORT “7 Fatal Money Management Mistakes Business Owners Make”
- Sandra Simmons
