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How to Create a Debt Consolidation Plan

Sandra Baker

Step 1: Determine the amount of debt you have by making a list of all debts, excluding any mortgage payments, in order from the debt with the highest interest rate to the lowest interest rate. Do not forget debts such as vehicles, student loans, store accounts, tax liens and credit card debt. Second mortgages or home equity loans should not be listed.

Step 2: Calculate the monthly payments made on each of your debts, based on the required minimum payment on each. The debt consolidation plan may help you to reduce the amount of monthly payment you are making, depending on the type of consolidation loan obtained.

Step 3: Shop for the best consolidation loan available to you, which could be a secured loan (such as a home equity loan) or an unsecured loan (such as a personal loan.) Look for the lowest rate line of credit available that offers enough of a credit limit to cover the total debt owed.

Step 4: Apply for the loan after telling lenders your desire to consolidate pre-existing debt with this new loan. Because you will pay off pre-existing debt with the loan, the lender may look more favorably on your application because of the reduction in debt.

Step 5: Put in place a budget that outlines all monthly expenses in total. Using this budget, keep all credit spending to the lowest possible amount, which will ensure that no further debt is accumulated. Use a cash only lifestyle until the debt is paid off in full.

Step 6: Continue to pay off the debt consolidation loan. For the debt consolidation plan to be successful, individuals need a firm commitment to enable them to improve their credit and build financial wealth.

Tips and Warnings
If a debt consolidation plan involving a loan does not seem to work for you, consider a debt consolidation program. This program does not involve a new loan. Rather, a third party debt counselor works with you to pay down the debt you have by negotiating lower interest rates. For more information, see resources below.

Source: KING.NET


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Example of Out of Office Reply for Terminated Employee

This is a sample message that I used for terminated employees, unless HR staff specified a different message.
=== Example for KING.NET Employee === John Doe (employee or consultant) is no longer with KING.NET effective June 1, 2008 (termination date). For matters relating to "Project Name here" please direct your concerns to John Smith at (Manager or Supervisor). For all other matters, please direct your email to Mary Smith HR at
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