Easy way to pay off debt
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If you are neck deep in debt, you need a super easy and no-brainer plan to follow to get out of debt as fast as you possibly can, instead of making it complicated. Enter in the debt snowball.
When I was paying off my debt I jumped around paying whichever debt I felt like in no particular order and my debt took longer than it should have to pay off, than if I had used an orderly plan.
The debt snowball that Dave Ramsey recommends is amazing!
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- You line up your debts smallest to largest, regardless of the interest rate and pay everything you can on the smallest debt until it is paid off, then rolling that payment on to the one for the second smallest debt.
- Keep with the debt snowball until everything is paid off.
This gives you a systematic approach to paying off your debt which will help you get through all the debt even faster!
Interest doesn’t matter
I want you to get rid of all your debt as quickly as possible and when you pay it off quickly, the interest doesn’t matter.
Paying just the minimum payments will drag on your debt pay for a very long time. Now is the time to get all crazy and start attacking your debt as fast as you can!
- The interest is added to the principal balance and when you drop the principal balance down by paying more on that debt, the interest will also drop.
When you are super motivated and are throwing every extra dollar you can find at the debt, you will get through the debt so fast that the interest won’t have time to accrue.
What would your life be like if you had zero payments? Think about the stress that will just melt away when your debt is paid off.
Paying your smallest debt first, regardless of the interest rate, will help you get to a place of financial freedom so much faster.
–>You can play around with your minimum payment/interest rates here to get an idea of how fast it will take to pay off your debt.
And now for the most important reason why I recommend paying the smallest debt first...
Like this post? Check out all the rest in :
- Paying Off Debt Series
Hi! I’m Charissa. I’m on a mission to help hardworking women overcome money struggles and gain financial peace with a Biblical perspective so they can have the freedom to impact their families and communities. Ready to make some changes that will impact your finances in 2020? Click here to get a free worksheet to help you make it happen!