Paying Off Your Debt – Quick! Dutchess Partners
This is a sponsored post.
Debt is a serious problem. According to a recent Gallup survey, the average American has 3.7 credit cards with a whopping 71% of us having at least one card. Furthermore, according to a survey by Bankrate.com a shocking 32% of us say we live paycheck to paycheck, and that staying current or getting caught up on bills is our main financial concern. In uncertain economic times like these, we need a plan and we need it fast.
Here are a couple of quick reasons why you pay your debt off as quickly as possible.
Increase Your Credit Score with Dutchess Partners
Reducing your balance-to-limit ratio on your credit cards can increase your credit score. Paying off your cards each month is ideal. Or not having a credit card at all will help those who can’t escape the lure of the card. I.e. ME But you can also find a company like Dutchess Partners that you can consolidate your credit cards in one lump payment.
More Financial Security
Having no debt leads to greater financial security. Monthly payments tie up a good portion of your income. You could be spending the extra money on things you want instead of just things you need, I have learned the hard way that sometimes what you want isn’t necessarily what you need. You could be saving for college, retirement, or a down payment for a house or car. Start building by making smart investments. No amount is too small. For us, the only big payment we have are the cars and the house.
Review Your Budget
Find ANY area you can cut back. I would strip back that budget to what Finance Guru, Dave Ramsey, calls “beans and rice”. Do you get the idea? Is having all name brand items really that important. I have learned that shopping thrift stores and clearance racks you can save a ton.
Strip back your budget to the items you have to pay like utilities, food, house, cars, and insurances. And if you have a little extra money pay a little extra on car payments.
Cut out and turn off ALL non-essential-to-life items. These would be the “wants” like cable, manicures, dinners out, vacations, etc.
List Your Debts
All of them! It doesn’t matter if it’s a $3 library fee, or a $10 loan from Mom or even a $20,000 car loan write them down from lowest to highest. Don’t list your house! Take all of the money that you have from stripping back your budget to essentials and start putting it towards your lowest (dollar amount) debt paying the minimum only on the rest.
Paying off your littlest debt first will give you a sense of immediate freedom. Once that debt is paid off take the increased money you now have and apply to your next biggest debt. It’s called “Snowballing” and it works well. The snowball gets bigger as it rolls. In the same way, the more funds that become freed up, the more you will be able to add to the next debt and so on.
Make a Plan
Plan out (on a calendar) how long it will take you to pay off each debt. Build-in little incentives in your budget for each debt paid off. Do something when you have hit a goal like taking everyone for ice cream or dinner. Your family will be sacrificing for a period of time so it’s good to reward them for short-term goals to keep the lone goal in view.
Look for Extra Money
Find ways to add more money to help pay off your debt sooner. Have a yard sale, deliver leaflets, get a paper route, or deliver pizza, or start an Etsy shop! With dedication, hard work, and sacrifice, you can get out of debt- quick! And then work a plan to stay that way.
