budgeting needs to be stressful?
hack your budget with our FREE 4-day Budget Boss Guide!

The Fastest & Most Affordable Ways To Pay Off Your Debt For Good

Oct 14, 2018 | Financial Freedom | 0 comments

If you didn’t know, most Americans are in debt.  And by most, I mean, 260 MILLION people.  260,000,000….Are you one of those 260 million people?  I know I am.Once you’re in debt, though, it can be pretty hard to get out of it, amirite?But, not no mo.For let me introduce you to the two best methods of paying off your debt quickly while saving tons of money.
debt, debt free, debt consolidation, personal loan, budgeting, budgeting for beginners, how to budget, free printables, budgeting printables, budget binder, financial planner
This post may contain affiliate links.  All opinions are our own.  See our disclosure, here.
As I said, debt can be a killer to get rid off, especially if you’re faced with high interest rates.With a little smart budgeting + a strategy for your debt repayment, though, you can pay back your debt quickly and cost-effectively.The two best ways to pay off your debt while saving money on interest are:

1. The Debt Snowball Method

2. Debt Consolidation With Personal Loans

Having a strategy for your debt repayment is crucial if you want to pay it back as quickly as possible while also saving money on interest costs.Let’s get into both options so you can decide which is best for you + will have you debt free the fastest.
THE DEBT-SNOWBALL METHOD
The Debt-Snowball Method is a debt reduction strategy best known by Dave Ramsey.The basis behind this strategy is to pay off your debts in order from lowest to largest amount owed until each debt is paid off in full.The Debt-Snowball Method is great because:
  • It attacks your debt head on
  • It will save you money on interest
  • It will cut your debt payoff time down tremendously
So, to start your debt-snowball, follow these steps:

1.  List your debts from smallest to largest

2.  Only pay the minimum amount due on all of your debts except your smallest owed

3.  Pay as much as your budget allows on your smallest debt until it is paid off in full

4.  Repeat steps 1-3 until each debt is paid off in full

This is a great strategy if you have a significant amount of extra money available to put towards paying off your debt.
AN EXAMPLE OF THE DEBT-SNOWBALL METHOD
Following the steps above, let’s see the debt-snowball method in action.Meet Bob.  Bob has four areas of debt in his life:

1.  Medical Bills – $750 (minimum payment due = $25)

2.  Credit Cards – $1,500 (minimum payment due = $50)

3.  Car Loan – $5,000 (minimum payment due = $250)

4.  Student Loans – $8,000 (minimum payment due = $200)

 Let’s say that Bob has an extra $500 to put towards paying off his debt.So, Bob pays $525 on his medical bills for a month and a half.  Then, bam, done with debt number one.  Next, he pays $575 on his credit cards until they are paid off in 2.5 months.  Then, he’ll pay $825 on his car loan for 6 months until that debt is paid off in full.  Finally, he’ll be able to pay $1,025 on his student loans and will have them paid off in a little over 7 months.That’s over $15,000 in debt that Bob has been able to pay off in under a year and a half.AWESOME.However,  if you don’t have a ton of extra money to put towards paying off your debts, getting a personal loan for debt consolidation could be a better solution for your debt reduction.
Stay accountable for your debt repayment with the Budget Boss Financial Planner
PERSONAL LOANS FOR DEBT CONSOLIDATION
I recently consolidated my credit card debt into a personal loan with PersonalLoans.com and let me tell ya, I couldn’t be more thrilled with the results.Credit card debt consolidation is awesome for 3 reasons:

1.  Personal loans have far lower interest rates than most credit cards (a.k.a, you’ll save a shit ton of money in interest costs).

2.  Personal loans allow you to pay off your debt in half of the amount of time than if you continued making regular, minimum payments on your credit cards.

3.  Consolidation of your credit card debt into a personal loan will drastically increase your credit score.

For these reasons, I think credit card debt consolidation is the best option for somebody who doesn’t have a ton of extra money to put towards their debt.If you wanna get straight to business, check out these loan options who have low-interest rates with fast application turn-around:
  • PersonalLoans.com – Loans up to $35,000 with interest rates as low as 5.99%
  • The Loan Exchange – Loans up to $100,000 with interest rates as low as 16.64%
  • Cash Advance – Will connect you with the best lenders based on your specifications. (Good for shopping around for the best rates.)
  • Bad Credit Loans – Use as a last resort if you have poor credit.  However, keep in mind that a lower credit score usually equates to a higher interest rate.
Otherwise, let’s get into the sweet stuff personal loans have to offer + my personal experience with credit card debt consolidation.
PERSONAL LOANS CAN HAVE SIGNIFICANTLY LOWER INTEREST RATES
The average credit card interest rate is a whopping 16.71% and can reach a height of almost 26% if you have poor credit.Personal loans, on the other hand, can have interest rates as low as 5% and on average do not exceed 15%.That is a major factor in determining how fast you’ll be able to pay off your debt and also determines how many of thousands of dollars you might spend in interest costs.For example, if you owed $2,500 on your credit card and made your minimum payment of $65.00 each month, you’d end up paying $1105 in interest!Contrary, if you took that same debt and consolidated it into a personal loan (with an average interest rate of 10%), you’d only pay $270 in interest.That. is. wild.  And exactly why I consolidated my credit card debt into a personal loan.I’m currently saving over $3,000 in interest costs with my loan from PersonalLoan.com.WILD.
GET RID OF YOUR CREDIT CARD DEBT IN HALF THE TIME
If you’re only able to make minimum payments on your credit card, it’s gonna take you hella long to pay it off.For instance, that scenario we talked about in the last section, would take you 4.7 years to pay off if you didn’t consolidate into a personal loan.If you consolidated that debt, though, it would only take you 2 years.Again, WILD.As I mentioned, I recently consolidated my credit card debt into a personal loan with PersonalLoans.com and will be paying off my debt in half the amount of time.You can get a personal loan from PersonalLoans.com 100% online and in as little as 3 days by clicking here.
SKYROCKET YOUR CREDIT SCORE
Consolidating your credit card debt into a personal loan will do 2 things for your credit score:

1.  It will lower your overall credit card usage

2.  It will increase your credit score

When I consolidated my credit card debt into a personal loan, my credit score increased by 50 points.Now, I have an extremely healthy credit score which opens the door to better interest rates on additional personal loans, credit cards, and/or mortgage loans.You can see below the jump my credit score saw between September and October after I consolidated my credit card debt into a personal loan with PersonalLoans.com.(For privacy reasons, I’ve chosen to black out my actual credit score information.)
THE BEST PERSONAL LOAN CONSOLIDATION OPTIONS:
Accessibility to personal loans is pretty great nowadays.There are a few options that I recommend over others, though, for reasons related to interest rates + turn-around-time.The options below have good interest rates and can approve your loan in as little as 1 business day.So, who do I recommend?1.  PersonalLoans.com
  • Loans up to $35,000
  • 100% online application
  • Interest rates as low as 5.99%
  • Can be funded in as little as 1 business day
2.  The Loan Exchange
  • Loans from $7,500 to $100,000
  • Interest rates as low as 16.64%
  • Same day approval + funding
3.  Cash Advance
  • A great resource to connect you with a network of lenders best suited for your loan requirements
  • FREE service
  • Use to shop around for the best interest rates
4.  Bad Credit Loans
  • Loans up to $5,000
  • ALL credit scores welcome – Works with a national network of lenders who have experience with applicants with poor credit
  • Quick loan request decision
I’ve personally used PersonalLoans.com to fund my credit card consolidation loan and couldn’t be happier with the results.
If you’re serious about paying off your debt, these debt repayment strategies will definitely help you out.Got extra money hanging around each month?  The Debt-Snowball Method could be your new best friend.But, maybe you don’t have any wiggle room, so a personal loan is the best option for you.Either way, you’ll be saving money and will pay off your debt far more quickly than if you continued to simply make minimum payments on your debts.Personally, I’ve consolidated my debt with a personal loan and have saved over $3,000 in interest costs and cut my payback time in half.Paying off your debt in full is crucial if you want to minimize your expenses so you can open the door to working less, affording more, or pursuing your dream job.You got this.
HAVE YOU USED THE DEBT-SNOWBALL METHOD?  HOW ABOUT DEBT CONSOLIDATION?  LET US KNOW BELOW!
Best,
xx Michelle
GET SERIOUS ABOUT BLOGGING.GET MORE SERIOUS ABOUT QUITTING YOUR 9-5.
QUIT PROCRASTINATING,START EARNING A LIVING, TODAY.
killer reads

How To Get Blog Traffic From Pinterest Quickly + Easily

Ready to explore our jam-packed resource library?All our printables, guides, checklists, e-courses, and more have moved to one handy place:  The Who Says What Resource Library.  Sign up now to explore + download to your heart's content!It was in my fourth month...

read more

4 Simple Tips To Save Money And Clear Debt

Ready to explore our jam-packed resource library?All our printables, guides, checklists, e-courses, and more have moved to one handy place:  The Who Says What Resource Library.  Sign up now to explore + download to your heart's content!No matter where you are on your...

read more
DEBT, debt consolidation, debt repayment, personal loan, how to budget, budgeting for beginners, budget binder, free budget printables, free printables, personal finance, budgeting, how to budget to save time and money, budget boss binder
DEBT, debt consolidation, debt repayment, personal loan, how to budget, budgeting for beginners, budget binder, free budget printables, free printables, personal finance, budgeting, how to budget to save time and money, budget boss binder
DEBT, debt consolidation, debt repayment, personal loan, how to budget, budgeting for beginners, budget binder, free budget printables, free printables, personal finance, budgeting, how to budget to save time and money, budget boss binder
pay off debt, DEBT, debt consolidation, debt repayment, personal loan, how to budget, budgeting for beginners, budget binder, free budget printables, free printables, personal finance, budgeting, how to budget to save time and money, budget boss binder
HOME  |   CONTACT  |   LEGAL  |  ABOUT US
Copyright 2016 Who Says What | All Rights Reserved
Created by Divi By Elegant Themes  |  Powered By TMDHosting

Pin It on Pinterest

Shares