The Fastest & Most Affordable Ways To Pay Off Your Debt For Good
1. The Debt Snowball Method
2. Debt Consolidation With Personal LoansHaving 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.
- It attacks your debt head on
- It will save you money on interest
- It will cut your debt payoff time down tremendously
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 fullThis is a great strategy if you have a significant amount of extra money available to put towards paying off your debt.
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.
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.
1. It will lower your overall credit card usage
2. It will increase your credit scoreWhen 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.)
- 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
- Loans from $7,500 to $100,000
- Interest rates as low as 16.64%
- Same day approval + funding
- 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
- 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