Everyone wants to reduce their debt, so you’re not alone. According to the Fidelity 2022 Financial Priorities Study, 41% of respondents reported that paying off debt was one of their top financial resolutions for the coming year…
Your payment techniques should be quick, efficient, and productive in order to keep you motivated while you pay off your debt. So, here are nine of the fastest ways to pay off your debt, according to experts, so you can have a better quality of life. ‘
Plan Your Course of Action
Jay Zigmont, Ph.D., CFP and founder of the Mississippi-based financial planning firm Live, Learn, Plan, advised clients to “make sure you understand why you want to get out of debt and what your goal is.”
It’s important to set SMART goals: Specific, Measurable, Achievable, Relevant, and Time-based. It’s not enough to state that you want to get out of debt; you must actually do something about it. I hope to pay off $6,000 in debt within the next year. After that, you can set monthly mini-goals of $500 each.
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Make a Financial Plan
Zigmont advised, “Before the month starts, make sure all of your money has a job.” Without making a plan to pay off your debt, you’ll never see any progress.” There is a wide range of financial constraints. Budgets can be compared to fad diets. That which works for you is better than any other. ”
Adhere to the Debt Avalanche Approach.
OVLG payday loan consolidation lawyer Lyle Solomon says, “Pay the minimum amount on all debts, but pay an additional amount on the debt that has the highest interest rate each month.” “Keep going until you get tired of it.
Reward yourself once you’ve gotten rid of it. You’ve paid off a portion of your debt and saved yourself a lot of money in interest. Now that you’ve paid off your first loan, you may move on to the next one.”
Make use of the Debt Snowball Method.
An alternative to the debt avalanche strategy is presented here.
Solomon explained that the first step is to pay down the smallest sum first. If you can’t afford to pay the smallest sum in full, pay the minimum on the rest. Follow this strategy until you’ve paid off the very last cent.
Once you’ve paid off the smallest loan, apply the remaining balance to the next smallest one. Start with the smallest balance and work your way up to the largest. As you pay off one debt after another, you’ll feel better about yourself.
Boost Your Earnings Potential
The founder of Debt Free Gonnabe Nika Boothe says that if you can find a way to boost your income, you’ll have more money available to pay down debt. Some quick strategies to enhance your income include selling household items, asking for a raise, selling services or crafts, babysitting or caring for pets, etc.,” he explains.
The longer it takes to pay off a loan, the less money you’ll end up spending in interest because you’re putting more money toward the principal.”
Pay every two weeks
Consider this advice if you’d like to pay off your mortgage more quickly.
The smart purchasing expert at TrueTrae, Trae Bodge, recommends paying off your loan more frequently than once a month. For every two weeks, you pay one-half of your monthly payment two weeks early, you’ll be saving years of interest.
As far back as my early twenties, I had to use an external service for this, but today many lenders provide this option. Everything is at your disposal; you simply need to ask for it. Adding a little extra to your principal each month will help things move along even faster.
Reduce Your Credit Card Interest Rates by Making a Request
According to Boothe, “a lot of individuals don’t realize that the APR (annual percentage rate) that goes into determining their interest rate is variable, which means it might alter from time to time.”
A lower interest rate does mean that more of your payment can go toward principal and you will pay less interest, which will help you pay off the loan more quickly.
With a long history of on-time payments and/or a rise in your credit score, you may be eligible for a lower interest rate increase.”
The new interest rate should be applied to both prior and new purchases, and it should be noted whether it is a promotional rate when asking for a reduction in the interest rate” (for a limited amount of time).
‘Hi, my name is X.’ is a simple but effective script. To determine if I’m eligible to get a cheaper interest rate, I’m phoning after being a customer for X years.'”
Utilize a Credit Card Balance Transfer Option
As Solomon advised, “You can also move your high-interest credit card balance to a low-interest one.” Transferring your balance is one way to do that. You can use the balance transfer card to pay off your high-interest credit cards and then repay them within 12 to 18 months at a 0% APR.”
Make Good Use of Any Extra Money You Receive
After receiving a bonus or tax refund, “it’s fun to take that cash windfall and arrange a trip or go shopping with it,” Bodge said. Make a lump-sum payment to the principal instead, and do it straight away so you don’t forget.
As long as some of the money is placed toward debt repayment like this, you’ll be able to pay it off faster.”
