Making Bigger Credit Card Payments and Still Getting Nowhere?
If you're like many others trying to pay off debt by making larger than the minimum due each month payments to each of your lenders, you might be frustrated at how little difference your efforts have made. What if you made one simple change in your payment schedule that could make a big difference in your financial freedom?
You can make a big change in your debt reduction with Accelerated Debt Payoff, also known as Debt-Stacking. Give this proven method of retiring your debt in a quick and speedy method a try and see some real difference.
What Is Accelerated Debt Payoff or Debt-Stacking?
First, determine what you're currently paying, in total, toward debt per month. Once you have that figure, rank your debt from the highest interest rate to the lowest interest rate. Simple so far, right? It gets easier! Now, you pay the minimum only, not one dime over, to every debt you have EXCEPT for the one with the highest interest rate. For that debt, you pay the minimum plus whatever you have left from that total sum you figured out earlier. You continue to do this each and every month until your highest interest rate debt is paid off. When that happens, you apply the savings you now have from the paid off debt to the next highest interest rate debt on your list - and so on, and so on. Before you know it, you'll be debt free.
Why does this work? You are focusing all your extra money on one debt at a time instead of spreading it out over all of them. By targeting the highest interest rate debt, you're erasing your most expensive liability quicker. As each debt gets paid, and you have accumulated savings to continue to apply, each successive debt is wiped out faster than the one before. You'll be happily surprised at how expedient this process is!
Don't worry if you've already consolidated all of your debts into one big loan. You should still be able to do this, to a certain degree. As long as your monthly payment for the consolidated loan is less per month than your individual payments were combined, you can make this work. Take a bit of what you're saving, and apply it to the consolidated loan payment to see a quicker payoff and less interest paid overall. For example; let's imagine that your total debt payments before the consolidation came out at $250.00, and your consolidation loan payment is $135.00. You have a savings of $115.00, and even adding a miniscule $10.00 on per month will make a surprising difference in long term payoff time and interest savings.
With this knowledge, you can now apply the money you were already spending in a more effective manner. Which means each dollar you spend toward debt becomes far more valuable and works that much harder for you.
Let's face it, getting out of debt can be a lifelong battle if you go at it incorrectly. Having the proper information will make all the difference in dealing with you debt in the best possible way.
Note: This is not the way to pay off your credit card debts for mortgage financing. You need another variation for that available in Credit Help! Get the Credit You Need to Buy Real Estate.
Free Credit Tips for Mortgage Financing ebook: Real Estate Credit Help
You can make a big change in your debt reduction with Accelerated Debt Payoff, also known as Debt-Stacking. Give this proven method of retiring your debt in a quick and speedy method a try and see some real difference.
What Is Accelerated Debt Payoff or Debt-Stacking?
First, determine what you're currently paying, in total, toward debt per month. Once you have that figure, rank your debt from the highest interest rate to the lowest interest rate. Simple so far, right? It gets easier! Now, you pay the minimum only, not one dime over, to every debt you have EXCEPT for the one with the highest interest rate. For that debt, you pay the minimum plus whatever you have left from that total sum you figured out earlier. You continue to do this each and every month until your highest interest rate debt is paid off. When that happens, you apply the savings you now have from the paid off debt to the next highest interest rate debt on your list - and so on, and so on. Before you know it, you'll be debt free.
Why does this work? You are focusing all your extra money on one debt at a time instead of spreading it out over all of them. By targeting the highest interest rate debt, you're erasing your most expensive liability quicker. As each debt gets paid, and you have accumulated savings to continue to apply, each successive debt is wiped out faster than the one before. You'll be happily surprised at how expedient this process is!
Don't worry if you've already consolidated all of your debts into one big loan. You should still be able to do this, to a certain degree. As long as your monthly payment for the consolidated loan is less per month than your individual payments were combined, you can make this work. Take a bit of what you're saving, and apply it to the consolidated loan payment to see a quicker payoff and less interest paid overall. For example; let's imagine that your total debt payments before the consolidation came out at $250.00, and your consolidation loan payment is $135.00. You have a savings of $115.00, and even adding a miniscule $10.00 on per month will make a surprising difference in long term payoff time and interest savings.
With this knowledge, you can now apply the money you were already spending in a more effective manner. Which means each dollar you spend toward debt becomes far more valuable and works that much harder for you.
Let's face it, getting out of debt can be a lifelong battle if you go at it incorrectly. Having the proper information will make all the difference in dealing with you debt in the best possible way.
Note: This is not the way to pay off your credit card debts for mortgage financing. You need another variation for that available in Credit Help! Get the Credit You Need to Buy Real Estate.
Free Credit Tips for Mortgage Financing ebook: Real Estate Credit Help
posted by Jeanette at Thursday, September 21, 2006
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