The PDQ Factor

January 21, 2009 · Filed Under Budgeting · Comments Off on The PDQ Factor 

By Cindy Morus, Creator of the Pay Debt Quickly System

It’s just about the beginning of a brand new year: a time to set goals, make plans, and start afresh; a time to dream of making more money, having a more beautiful body, and experiencing more love. I can’t help you with your body or your love life but I can show you some tools for making more money this year.

Have you ever heard of the PDQ Factor? Probably not, but you probably have heard of the acronym PDQ, which means “pretty darn quick” and that can be expensive: think fast food, fast cars, and fast women. This PDQ, The PDQ Factor will save you money. In fact, it can even make you wealthy over time.

To illustrate…take an empty glass and set it under the water faucet. Now turn the faucet to a single drip, or a slow trickle if you’re really impatient, and watch the glass fill up. It takes a while but it does get full. If you were thirsty, it wouldn’t have been nearly as fast as turning the faucet to full force but it was just as effective. The PDQ Factor is the slow trickle equivalent in the world of money. It stands for Pennies, Dimes and Quarters. Nickels count too, they just messed up the snappy title so we left them out; but don’t you leave them out of your investment toolbox.

Here’s an easy plan to make an extra $1000 this year. It won’t take much time or energy-really none at all. By investing just $2.74 a day-the cost of a designer coffee drink; a bad drive-thru meal; or 8 quarters, 5 dimes, 4 nickels, and 4 pennies, in just 365 days you will have an additional $1000 in the bank. Did you know that accumulating wealth is this effortless? Make a plan, stick to it and watch success sneak up on you in teen-tiny increments.

With no pain and all gain you’ve just set a financial goal; a goal that can be effortlessly reached by making a very minor tweak or two in how you live your daily life.

Break down your goal and see how many PDQ’s it takes! And don’t forget to start today!

The same thing applies to debt. If you’re struggling with debt and it feels like you’ll never see the end, you can apply the same principles.

Get More Help:

Eliminate your debt and save your money using the Pay Debt Quickly System. It comes with the software and strategies you need get rid of your debt without making an large payments or making any significant lifestyle changes. Click here to learn more and get started right away.

3 Steps to Eliminating Debt

January 21, 2009 · Filed Under Budgeting · Comments Off on 3 Steps to Eliminating Debt 

By Cindy Morus, Creator of the Pay Debt Quickly System

Are you struggling with debt? I’ve been there (and it was a major cause of my divorce). This is information I wish I had known then.

Step 1: Draw a Debt Picture Gather all your statements and enter your information in the Debt Payoff Info worksheet. You’ll need to know your balance, interest rate and current payment. Total the balances and the payments. Acknowledge that you used your credit cards to fund your lifestyle and move on to debt-freedom.

Step 2: Stop using your Credit Cards The credit card companies are masters at this game and if you’re carrying a balance, you’re on the losing end of the deal.

* Did you know that new purchases don’t have a grace period if you have a balance?

* Did you know that new purchases don’t usually get the existing teaser rate?

* Did you know that if you have multiple interest rates on the same card that most or even all of your payments will go to the balance with the lowest interest rate while the balances at the highest interest rate just keep compounding?

These are all great reasons to stop using your credit cards now!

Step 3: Convert Minimum Payments to Fixed Payments This is the beautiful part! Let me explain. When you get a home and auto loan, you pay the same amount of money for a specific amount of time and then you’re done and the debt is paid off. With a credit card, though, your payment is a percentage (usually around 4%) of your balance. As you make payments, your balance drops and so does your minimum payment. This is what will keep you in debt jail for a very long time.

However, you don’t have to make just the minimum payment. I recommend that you take the minimum payment from this month and pay that same amount every single month until it is paid off. Converting your credit cards payments to fixed payments can save years and years and thousands of dollars. Let’s see how much this method can save by looking at one client’s debt information:

Name Interest Rate Current Balance Minimum Payment

Visa 32.24% $970.86 $29.00

MasterCard 19.49% $1,506.00 $128.00

Cap One 16.24% $11,700.00 $277.00

Store Card 13.07% $1,407.00 $42.00

Auto Loan 8.09% $10,356.00 $237.00

TOTALS n/a $25,940.00 $713.00

Paying the minimums only will take 350 months and cost $49,007 (total interest is $23,067 almost double the current balances!). Changing the payments to fixed (paying the same amount every month as listed above) will take 47 months and the total will be $33,272 ($7,332 in interest). Total savings is $15,735 and over 25 years!! AND they didn’t pay any more than they paid this month.

Get More Help:

Eliminate your debt and save your money using the Pay Debt Quickly System. It comes with the software and strategies you need get rid of your debt without making an large payments or making any significant lifestyle changes. Click here to learn more and get started right away.

What Do I Do if My Debt Payments Are Higher Than My Income?

January 21, 2009 · Filed Under Budgeting · Comments Off on What Do I Do if My Debt Payments Are Higher Than My Income? 

By Cindy Morus, Creator of the Pay Debt Quickly System

Question: I don’t know how to pay off my debt. My debts are more than the money I earn each month. What can I do?

Answer: That’s a tough spot to be in. Let’s look at the scenario that your debts are higher than your income but you’re still able to make the payments. It sounds like this is really worrying you – maybe that you won’t be able to make the payments soon. So, now is a good time to be asking this question. Since you can make the payments, every month, you’re actually in a good position to be able to eliminate the debt over the next couple of years (perhaps sooner). Here’s what to do…

1. From Minimum Payments to Fixed Payments. Convert all your current minimum payments to fixed payments. That means that if you are paying $55.55 this month, you’ll pay that every single month until the debt is paid off – no matter what the minimum payment is on your bill.
2. Stop Using Your Credit Cards. There’s no grace period on cards that have a balance so you start paying interest on new charges immediately.
3. Get Clear on Your Debt. List every one of your debts on a piece of paper (you can get my form here) so you know exactly what you’re dealing with. Sometimes it’s worse than you thought and sometimes not so bad but you won’t be able to really know until you see it all in black and white.

Get More Help:

Eliminate your debt and save your money using the Pay Debt Quickly System. It comes with the software and strategies you need get rid of your debt without making an large payments or making any significant lifestyle changes. Click here to learn more and get started right away.

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