Debt Management

1. “One of the best tools a heavily indebted person can use is a pair of scissors. CUT UP THOSE CARDS!” – Ancient Proverb

2. “Plan to retire with only a modest mortgage and maybe a car payment. How can you do this? See Item #1 above” – Another Ancient Proverb

Basic Debt Management

After your pension, debt management is the next most important element of retirement planning. It’s one thing to want to retire. It’s another to actually control and reduce spending enough to achieve a successful retirement.

I. If you have credit card debt you need to take the following medicine:

1. Stop using the cards.
2. Use every available cent of income to pay down the card with the highest interest rate. Make minimum payments on all the other cards until the worst interest rate card is paid off completely.
3. Move on to the next highest interest rate card.
4. Explore a refinance of your house to pay these off only if you know you will never ever build up the credit card debt again!

II. If you have auto loans, live within your means and drive the vehicle at least 3 years after it is paid off. You’ll be amazed what that can do to help control your finances.

III. If your mortgage interest rate is above 6 _% and the balance is more than $40,000 then you should refinance at today’s (November 1, 2005) low rates. The best place to shop for a mortgage is
If you need additional information send me a note on the HELPLINE or call.