Debt Relief Fast? Add These 3 Steps To Your Financial Routine

By: William Brooks

Did you know that HOW you pay your debts can affect how soon you will finishing paying them off - even if you keep paying the same amount for debt every month? Of course you might be able to get a consolidation loan, but if you're not eligible or are not interested then there are several other things you can do.

It's not always the easiest to figure out the mathematics, but there are three steps to quicker debt relief - guaranteed.

STEP ONE - Create a list.

List your smallest debts first followed by your largest high-interest debts (credit card) and then your largest low-interest debts (Lines of credit and taxes).

Now there is another rule that you can go by and that is to list your high interest credit cards and loan first and the smallest interest rate loans last. This is the best method but wares on you the most because it takes longer to see immediate results.

You want to pay off the high interest first because those are the loans that are costing you the most each month.

STEP TWO - High Interest first

So why the high interest first? Well as I mentioned in the step above, these credit cards and loans are costing you the most each month. This is that debt that tends to stack up the fastest. The faster you can pay that off the better off you will be.

Now if you want to get things kicked off to quick start, you can pay off the smallest balance credit card or loan. This will help to motivate you and get that first success under your belt.

STEP THREE - Move the payments along.

When one debt is paid add the funds to the next debt. For example, say you're making $75 payments to a small debt. When the debt is cleared add the $75 to the next debt on your list. If the next debt had a minimum payment of $100, you will now pay $175 until it is paid off. When that one is finished, take the $175 and add it to the next payment and so on.

STEP FOUR - Save the cash!

Don't forget that when your debts are cleared you have set yourself up for a better financial future. The best way to take advantage of your new situation is to use all the money you were spending on debts and start investing or saving it every month. Oh yeah wealth building!

With this strategy your debts will clear faster meaning you will pay less interest, you will see progress as you clear small debts first, and you will not be tempted to use the funds for personal use instead of debt repayment.

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