Tips for Paying Off Debt FAST

Paying off debt fast

The Stack Method.

Want to get rid of your debt? The “stack method” is a very effective strategy to use when you’ve got debt you need to take care of. Making a plan empowers you to feel like you’ve got it handled now, and makes it easier to take care of debt in the weeks, months, and years to come!

Paying Off Debt FAST

Step 1: Stop Creating New Debt

Most people do not receive training in handling money and how to live within their means. If you’re in debt then you’re probably one of these people and it’s time to bite the reality bullet. It’s going to be impossible to get out of debt unless you retrain your financial habits right now.

You must make a stand against all the marketers trying to take your hard earned money or offering easy finance. You don’t need more stuff to make you happy. What you need is financial peace of mind.

Step 2: Rank Your Debt By Interest Rate

Make a list of all your debt with amounts and the interest rate. The highest interest rate should be at the top as this is what you’ll pay off first. Paying off your high interest debt is the key to the Stack Method and paying off debt as fast as possible.

Interest is a powerful weapon and right now the bank or other financial institutions are using it against you. Interest significantly increases the amount you need to pay back and often we’re completely unaware of how much that is.

– via Lifehack

Use a Balance Transfer Card

A little strategic planning now can make a huge difference both now and in the future. Let’s take a look at some other strategies to get your debt gone for good.

 

If you have a strong credit score (typically 700 or higher) then why not try a balance transfer?

You can use MagnifyMoney’s balance transfer comparison tool to find the offers that suit you best. Look for upfront balance transfer fees and the details on monthly minimum payments.

Sometimes, a creditor will approve and open a new card for you but only give you a small credit line; enough to cover a portion of your requested balance transfer.

If this happens, you can look to do multiple balance transfers. However, if you use this method, be sure you are determined to pay off your debt. There is no reason to have new cards if you continue to spend beyond your means. And don’t spend on the card you used to complete the balance transfer! In fact, go ahead and lock it away as soon as you complete the transfer so you aren’t even tempted.

Say you have $10,000 of debt with Discover at a 21% interest rate. You apply for the Chase Slate 0% intro APR for 15 months, and $0 intro fee for balance transfers. Chase approves you, but only for $4,000. You can first call Chase and request a higher line of credit to move the entire balance over. Chase may agree to only raise it by another $2,000 leaving you with $4,000 left at Discover.

Next, you can apply for another balance transfer offer like Santander Sphere Visa at 0% for 24 months with a 4% fee to move the entire debt to a zero percent or low interest rate promotional offer.

– via MagnifyMoney

Do you have debt that needs to be addressed? How do you plan to get rid of your debt?

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