Get Out Of Debt Faster With Debt Stacking
Each month you pay the minimums and although
you KNOW you've got a handle on it - you are not charging your credit card
or accumulating new debts anymore - it seems that you will be paying the
minimum fees forever.
Did you know that HOW you pay your debts
can affect how soon you will finishing paying them off - even if you keep
paying the same amount for debt every month? Of course you might be able
to get a consolidation loan, but if you're not eligible or are not interested
then there are several other things you can do.
It's not always the easiest to figure
out the mathematics, but there are three steps to quicker debt relief -
guaranteed.
STEP ONE - Create a list
List your smallest debts first followed
by your largest high-interest debts (credit card) and then your largest
low-interest debts (Lines of credit and taxes).
Plan to pay the minimums on all debts
with these goals in mind:
STEP TWO - Small bills first
They may not be the highest interest,
but every bill that you are paying some interest on means you are usually
only paying minimal amounts on the principal. Multiple debts are also a
sure way to bring your spirits down. Paying off small debts first is a
quick way to start checking them off - and freeing your mind.
STEP THREE - Move the payments along
When one debt is paid add the funds to
the next debt. For example, say you're making $75 payments to a small debt.
When the debt is cleared add the $75 to the next debt on your list. If
the next debt had a minimum payment of $100, you will now pay $175 until
it is paid off. When that one is finished, take the $175 and add it to
the next payment and so on.
STEP FOUR - Save the cash!
Don't forget that when your debts are
cleared you have set yourself up for a better financial future. The best
way to take advantage of your new situation is to use all the money you
were spending on debts and start investing or saving it every month.
With this strategy your debts will clear
faster meaning you will pay less interest, you will see progress as you
clear small debts first, and you will not be tempted to use the funds for
personal use instead of debt repayment.
It is a worthwhile goal to get out of
debt. Seeing that goal come sooner and teaching yourself discipline sets
you up for a brighter financial future. You OWE yourself that!
Author-Bio: James Louis writes about things
that impact our society. His years of experience in finance prompts him
to write about and share his insights about different aspects of the financial
world. One of those insightful subjects is payday loans. For more information
visit: http://www.payday-loan-site.com |
