101 Ways to Get Out Of Debt and On the Road to Wealth is the ultimate handbook for anybody who wants to get out of debt and stay out of debt.
This book will provide you with an insider's knowledge of how to beat the lenders at their own game. Inside you will find 101 practical and proven methods that anybody can use to master their debt. Best-selling author Ashley Ormond shows you how to conquer all types of debt, including mortgages, credit cards, car loans, personal loans, investment loans and small business loans.
In this book you will learn how to:
save a fortune in interestget out of debt years earlierdecide which debts to attack firstfind the best lending deals for your needsmanage repayment problems.
Ashley Ormonds common-sense approach will get you debt free and on the road to wealth in no time -- and that means more control over your life, less stress, and greater long-term security for you and your family.
About the author xi
Part I: the household debt explosion 1
Part II: first things first 11
1 Work out how far in the red you are 13
2 Compare debts with income 14
3 Work out your total loan repayment bill 16
4 Get the facts on all your loans 17
5 Check your interest rates 19
6 Add up all those extra fees and charges 20
7 Sort your debts 21
8 Prioritise your debts 24
9 Check your credit rating 26
10 Make a calendar and set targets 27
101 Ways to Get Out of Debt and On the Road to Wealth
Part III: mortgages 29
11 Do the numbers 31
12 Increase your mortgage repayments 34
13 Make one-off extra payments 37
14 Use pay rises to increase your loan repayments 41
15 Shorten the life of the loan 43
16 Use your income patterns to pay off sooner 45
17 Pay fortnightly instead of monthly 47
18 Shop around for a lower rate 48
19 Keep repayments flat when rates fall 51
20 Dont keep switching loans 53
21 When refinancing, stick with your existing lender if you can 55
22 Always choose principal-and-interest loans over interest-only loans 56
23 Stick with floating mortgages 58
24 Avoid redraw mortgages 60
25 Be careful of offset accounts 62
26 Dont use line-of-credit mortgages 64
27 Beware the honeymoon rate nightmare 66
28 Dont capitalise loans 68
29 Upgrade your subprime loan 71
30 Consolidate debt at your peril! 72
31 Dont pay for features you dont need 75
32 Take into account all fees 77
33 All fees are negotiable 79
34 Dont count on your partners income to borrow more 80
35 Mortgage brokers spot the double take 82
36 Check that you are getting the correct rate changes 84
37 Let a tenant pay the mortgage 85
38 Consider long-term house-sitting 86
39 Plan a mortgage-burning party in advance 88
40 Pay off the mortgage before investing 89
41 Dont bank on your superannuation fund to pay off the mortgage 93
42 Let grown-up kids pay part of your mortgage 94
43 Consider mortgage contributions instead of presents 95
44 Downsize smaller house, smaller mortgage 96
45 Trade up houses, but trade down debt 98
46 Try the payout two-step 101
47 Avoid complex mortgage-reduction schemes 102
48 If you have to sell, stay in control 103
Part IV: credit cards 105
49 Find out how much you spend on credit cards 107
50 Choose the right card for your needs 108
51 Avoid credit card surfing 108
52 Never use cash advances 109
53 Cut up your store cards 110
54 Never pay just the minimum amount 111
55 Keep payments flat 113
56 Use direct debits 114
57 Check every item on statements 115
58 Once youve paid it off, cut it up 116
59 Consider changing to charge cards 117
60 If you have a charge card, dont take up the credit option 118
61 Reduce your credit limits 119
62 Do leave home without it! 120
Part V: car loans, personal loans, boat loans and store loans 123
63 Renegotiate, dont refinance 125
64 Always pay a cash deposit 126
65 Never buy new 128
66 Dont self-insure 130
67 Dont use store loans 131
68 If you fall into arrears, tell your lender as soon as possible 132
69 Get the credit bureau to limit more lending 134
70 Celebrate each win 135
Part VI: investment loans 137
71 Use principal-and-interest loans for investment properties 139
72 Avoid fixed-rate loans for rental properties 140
73 Avoid lines of credit for investment properties 141
74 Use your tax refund 142
75 Dont use deposit bonds 143
76 Dont borrow for the holiday house 145
77 Borrow in the same currency as your income 146
78 Beware the margin on share loans 149
79 Use dividends to pay off the principal on share loans 151
Part VII: small business debts 153
80 Get your personal finances sorted before starting a business 155
81 Keep business finances separate 156
82 Use your business plan 156
83 Dont make capital purchases using the overdraft 157
84 Dont extend your lease term too long 158
85 Avoid high lease residuals 160
86 When buying a business, do your research 161
87 Dont borrow to buy a franchise 163
88 Be careful of line-of-credit mortgages for business 164
89 Use supplier terms and customer terms sensibly 165
90 Sell your debtors 167
91 Maximise depreciation 168
92 Never pay full price for business equipment 170
93 Business succession to reduce debt 171
Part VIII: avoiding and minimising debt 173
94 Maintain an emergency cash fund 175
95 Use separate accounts for savings goals 176
96 No deposit, no mortgage 177
97 Renters, get a 10 to 15 per cent discount on your first home 179
98 Dont borrow to put money into superannuation 181
99 Avoid tax-based schemes 182
100 Be careful if guaranteeing other peoples debts 183
101 Beware the lender who says you can afford a loan 185
Part IX: the final pay-off 189
Part X: useful resources 191
Index 195