Are you tired of watching your debt grow month after month? Do you realize how much you are paying in interest over the years to the companies you have credit cards with? We’ve all done it and sometimes it feels like there’s just no way out of the credit trap. I’ll share how you can start paying off your debt rather quickly by taking small steps and sticking with the plan.
You can start out with as little as $20 per week, but I suggest you do you best to come up with $200 a month extra to pay off your debt. You will see results much faster that way. In a couple of weeks we’ll talk more about simple ways to come up with a few hundred extra dollars per month, but for now start with whatever amount you can afford. The important thing is to get started.
Take out a sheet of paper and list all your current debt on there including
- Credit Cards
- Store Credits
- Furniture bought on buy now pay later
- Car Loans
- Student Loans
Now jot down how much you owe on each and how much interest you pay. Your highest interest debt is probably going to be one of your credit cards. That’s where we will start.
You are already making at least minimum payments to pay each of these debts off. I want you to take that $200 and add it to your regular payment toward your highest interest credit card. Let’s say you’ve been paying $50 each month toward it so far. Now you are going to pay $250 each month – until it is paid off.
Here’s where it gets interesting…
Once your first card is paid off, take the entire $250 and add it to what you are already paying on your second card. Let’s say you’ve been paying $100 so far. You would now be paying $350. Once that card is paid off you take the $350 and apply it towards paying off your next debt. Let’s say your next debt is your $200 car payment.
How fast do you think you can pay your car off by adding an extra $350 a month? And then you will have an extra $550 a month that could go towards paying off your student loans or your mortgage.
Can you see how once you get the ball rolling the debt starts getting paid off rather quickly?
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