Debt is a thousand pound weight attached to your ankle. Try going anywhere and you’ll soon wish you had a strategy to reduce your debt.
Interest rates are still relatively low, but is that a good enough excuse to rack up the debt?
Someone told me recently that money is “cheap,” and why not rack up the debt if its cheap?
Well you can probably guess what that answer is —
And after I was done vomiting.
No, we don’t need any debt, thank you very much!
Reduce Your Debt
Now it’s time to conquer any debt you may have and avoid it like the plague.
Okay, so you racked up some debt and want to get rid of it. I’ve talked about this before, but it’s super important that you follow these simple rules to reduce your debt as fast as possible.
Pay the minimum on each credit card or loan and then anything additional towards the debt with the highest rate.
One caveat! If you have an adjustable or balloon rate, you need to take additional steps.
Once it’s paid off, repeat back to step 1.
Here’s the instant replay.
Steps to Reduce Your Debt
1. Order rates highest to lowest.
2. Pay minimums.
3. Pay additional money towards highest rate debt.
4. Repeat until paid off.
5. Stop racking up debt.
6. Save more.
7. Retire Happily Ever After debt free.