Why wait for New Years to do something about your debt?
We are throwing a few quick tips your way to help pay off those bills NOW!
Use the Debt Avalanche
We covered this cheatsheet to debt-free life in THIS post. In a summary, you prioritize your highest interest rate debt first…and you pay it as heavy as your budget allows. Pay if off, and move that payment to the next item. This method is how I will be paying off my $125,000 mortgage in 6 years!
Round It Up!
Is your bill $292.44? Pay $300. Or $325. You make too much money to literally pay cents towards your bills. You won’t notice the $6 a week. You will notice how much quicker you pay off your bills.
Make 13 payments instead of 12
This one is my FAVORITE secret! If you do this with your mortgage, you can cut years off of your mortgage and save upwards of $20,000+.Take your payment amount, multiply it by 13, and divide that number by 12. Pay this. Done!
Example: $500 payment X 13 = $6,500. Divided by 12 = $541.
Old Payment = $500 | New Payment = $541
That’s right. $10.25 per week can save you THOUSANDS of dollars.
Refinance & ask for lower rates
Man Vs Cash covered that right HERE, too! If you are paying high rates on your debt, simply ask your lender and others for a lower rate. IF your credit has improved since you got the loan, or if you have paid off other debts in the meantime, you likely qualify for a better interest rate. Be sure to check other institutions who may be able to refinance multiple debts and save you cash!
Pay more than the minimum payment
By paying more each month, you will pay it off faster, and save on interest. It’s as simple is that.
Cut expenses you don’t need
Netflix? Gym membership? Cable? Those are “wants”, honey. What do you want more… House of Cards, or a paid off house? You decide.
Drop expensive habits
Do you drink? Smoke? Quit it! They only harm your health, cost you more in health-related costs, shorten your life…and affect your budget every day!Is coffee your thing? How about eating out for lunch? Make it at home and save the $5.
Consider balance transfers
If your lender won’t budge on rates, take a minute and see if another lender offers a competitive balance transfer rate. With these, you can secure rates as low as 0% for many months (in stark contrast to a rate that might be upwards of 19%), although you may find a balance transfer fee to move the debt.
Combine multiple of these tactics and take back control of your life from your lenders!