Get Rid Of Debt Faster Than You Expected

debt reduction

Get Out of Debt In Record Time!

The decision to get out of debt is one of the best decisions you will ever make. Starting down that road it may seem long but there are ways to make it shorter.

Here are a couple of ideas of how to get really serious about paying off your mortgage and credit cards early. When you do, you will feel great and your financial future will be bright!



Putting It All Together to Pay Off Your Mortgage More Quickly

If you want to get really aggressive with your mortgage payments, round them up to a higher number and then cut that number in half and pay it bi-weekly. Just make sure, though, that your budget can handle these larger payments. If you head down this road, you may also want to talk to your lender about creating a safety net to fall back on if you end up taking on more than you can chew.

You can sometimes do this by officially setting up your mortgage with the lowest payments possible and then signing a voluntary payment option agreement to accelerate your payments. In the future, if your finances become strained you can always revert back to a lower amount or the minimum that you’re required to pay. Also be sure to check that you are allowed to increase your payments. With certain types of mortgages there are extra payment restrictions.

Make Extra Payments on Your Credit Cards, Loan, or Mortgage

When you have some extra money, consider using it to pay down your credit card, loan, or mortgage. It will pay you big dividends in the future. Extra money can be found when you receive a bonus at work, get a tax refund, or come into some unexpected money.

All extra money that you pay on a credit card, loan, or mortgage goes straight to paying down your principal balance. As long as your payments are up to date, no part of your extra payment will ever go to interest. This is because your regular monthly payment pays the interest.
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Strategies to Retire Debt Early

If you have decided that you are going to go ahead full speed to pay off your debt early there are strategies that will help you along the way. Here are just three and if you apply them, you will find your finances coming into balance and moving to a new better place much more quickly than you ever imagined.

Pay More Than the Minimum

Make sure that you always pay more than your minimum payments. If you only make your minimum credit card payments each month, it can take forever to pay off your balance. If you want to pay off your balance quickly, pay as much extra as you can afford. Even an extra $50 each month will help. Try using a financial calculator to see how much you can save like this!

Spend Less Than You Plan to Spend

Most of us have wishes and wants that are bigger than our pay cheques. You might have heard the great saying that, “You can have almost anything you want; you just can’t afford everything you want.” Many people get into debt and stay in debt because they tend to buy what they want, when they want. Not even millionaires can afford to buy everything they want. If you want something, don’t buy it unless you have the money. If you can be satisfied with less than you would ideally want, even temporarily, you can use the money you save to pay down your debt. By the time your debt is paid off, you’ll probably have adjusted to your new priorities, and you can use the money that you are saving to put towards other financial priorities.

Pay Off Your Most Expensive Debts First

One of the smartest strategies for getting out of debt is to make minimum payments on all of your debts and credit cards except for one. Chose the one debt that is charging you the most interest and focus all of your extra payments on paying that one off first. Once your first, most expensive debt is paid off, take all of that money that you were paying on that first debt and focus it on the next most expensive debt. Continue this method as you pay down each of your debts, and you will be left with your least expensive debt to pay down last. This strategy will get you out of debt quickly, and you will feel encouraged as you see your progress.
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Is paying off your debt a priority for you? Do you have any other strategies to help you pay it off more quickly?

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