tag:blogger.com,1999:blog-74674802088522674472011-04-21T19:56:09.796-07:00We dedicate this blog as a place where people can learn and exchange ideas on how to get out of debt.Mano Waikatonoreply@blogger.comBlogger1125Optimoneyhttp://feedburner.google.comtag:blogger.com,1999:blog-7467480208852267447.post-16001915383537001742008-10-11T13:31:00.000-07:002008-10-12T09:48:36.752-07:002008-10-12T09:48:36.752-07:00Dear readers,<br /><br />I am recommending to use the Rule 10:70:20 to overcome your bad debt? Below is the steps to implement the Rule 10:70:20.<br /><br />Step 1:<br />Invest 10% of your monthly gross income without fail into an emergency fund until the amount reach 3-6 times of your monthly gross income.<br /><br />Step 2:<br />Spend only up to 70% of your monthly income to pay off car loan, housing loan, personal loan, existing and still can use credit card's minimum payment, petrol, telephone bill, utilities bills, groceries, daily expenses, etc.<br /><br />Step 3:<br />Use 20% of your monthly gross income to pay off your oustanding loan that had turn bad. Choose to pay the most expensive first and then choose to pay the smallest outstanding loan.<br /><br />Hope that the above Rule 10:70:20 can improve our financial situation. Don't forget to give yourself a cople of years to implement the above rule.<br /><br />There is no magic and nothing is impossible. I welcome comments and enquiry on the rule.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/7467480208852267447-1600191538353700174?l=optimoney.blogspot.com' alt='' /></div><img src="http://feeds.feedburner.com/~r/Optimoney/~4/cjoT9M46EzM" height="1" width="1"/>Mano Waikatonoreply@blogger.com0http://optimoney.blogspot.com/2008/10/how-to-pay-off-your-bad-debt.html