This is the third of three articles on getting out of debt:
Look at you making it all the way to the final article! You must be serious about paying off your debt.
To sum up the first couple articles, you need to create a budget, cut unnecessary expenses, and find a way to increase your income to maximize your debt repayment.
Now it’s time for you to take action and be debt free for good!
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Avoid the Common Pitfall
What happens when you follow the advice from the first two articles? You reduce your expenses and earn extra money each month from working hard.
There are a lot of people who end up letting this extra money burn a hole in their pocket! They worked so hard to create additional money for the purpose of repaying debt, but they end up blowing it on material goods. Now they have more cool things but are in the same situation.
Don’t let this happen to you! Remember why you started working so hard, to pay off debt!
Pay off Debt
It’s time to use that new surplus of cash to pay down your debt. If you have multiple loans, I recommend paying off your debt through a method called the debt snowball.
The debt snowball method has you make the minimum payments on all of your loans, while you throw as much money as possible at your smallest loan, regardless of interest rates.
The benefit to the debt snowball method is that it’s a huge confidence booster! It’s fun to get rid of debt, and when you start with the smallest debt, you’ll knock it out fast. Now you can tackle the next smallest loan!Sharing is Caring!Click To Tweet
Follow a Program
If you are reading this article, then I already know you are ready to pay off your debt. You’ve read through all three articles in this series and you are fired up more than ever to kick debts tush!
One of the best things you can do for yourself is to find a program and stick to it. A program is going to help you stay on track and assist you through the challenging process of repaying your debt.
I’ve used Dave Ramsey’s Financial Peace University with my wife. It got our budget in shape and we used the methods within the course to help make major progress on our mortgage.
What are your favorite tips to repaying debt? Let me know in the comments below!