Ever wonder why debt and death rhymes? It’s because for some people who are too deep in debt, paying it off feels like forever, sometimes extending up to the very end. Not a good picture, is it?
Sounds a bit morbid, but it’s true.
Now let’s do something about that, shall we?
If you’re in debt, and if you’re troubled about being in debt, and if you have too much debt, and you want to escape the perils of debt, you need to face the truth, not pretend what you’re doing is ok and paying off is second priority.
Whether it’s a mortgage or a student loan, many people find themselves crippled by debt at some point in their lives. This situation keeps us from doing what we want in life and instead forces us to do jobs to pay the bills and keep our heads above the water.
In this article, I’ll show you how to pay off your debt as quickly as possible through the “stack method.”
Say no to new debts. Many of us don’t receive training in handling finances and how to live within means. If you’re currently in debt, then you’re one of these people and it’s high time to face the bitter truth. It’s going to be impossible to get out of debt if you’re going to continue your bad financial habits right now.
Take a stand against all marketers trying to lead you into purchasing unnecessary things. You don’t need more stuff to keep yourself happy. What you want in the long run is a peace of mind. Now go, cut up those credit cards or freeze them. This way you’ll have a harder time obtaining your wants and instead focus on what you really need.
Start with the highest interest rate. Now take a look at your current debts and their corresponding interest rate. Pay off your high interest rate, as this is the key to the stack method. Interest is one clever weapon use against us by banks and financial institutions. Paying them off significantly decreases the amount you need to pay.
If you’re someone who’s just starting to look for a property, keep in mind that there are fixed rate interest home loans available online with payment plans, these solutions won’t put you in unexpected financial disadvantage.
Create a Spending Plan. Start taking control of your finances. Find a quiet space and write down your income after tax and all the expenses you have. This includes the minimum payment on all your debt. Examine your expenses and then rank them in importance. Check the bottom of your list and see whether you really need them. The aim is to create a strategic spending plan where your expenses becomes lower than your income.
Keep Trying. I never said it will be an easy process. Your resolve is going to be tested repeatedly. Maybe you’ll have an emergency like health issues, home crisis or your car breaking down. Unforeseen circumstances are normal, but the important thing is to never give up in despair and returning back to your old habits.
Life will constantly test your patience, but the satisfaction of knocking out debts for life is surely worth the effort. Start your journey to financial freedom today!