Fastest Way to Pay Down Debt

Fastest Way to Pay Down Debt

( – Do you wake up each day stressed out about debt? It can be all consuming, and that can trigger more anxiety and even health problems. There is a simple solution. Get rid of it! Easier said than done, right?

According to this video by Nate O’Brien, it can be done, even if you’re making less than you owe. Here are some tips on getting your debt paid down fast.

The Snowball Method

This debt crushing method, developed by financial advisor Dave Ramsey, goes after your smallest debt first. Start by listing your debt from the largest to the lowest amount.

Take a look at the lowest balance and focus all of your energy on paying that off. From there, attack the next lowest. The success you feel as you pay off your smaller debts may give you the momentum to keep going. The goal is to stay focused on paying off all of your debt over time.

Debt Avalanche Method

Maybe that debt strategy doesn’t necessarily appeal to you. Switch gears a bit. Tackle the largest, highest-interest debt off first, making minimum payments on the rest. It may take a while, but once you’re able to put that debt to rest, you can start chipping away at other accounts.

Adjust Your Monthly Budget

No matter what plan of attack you decide on, you may need to adjust your existing budget. You might want to try the zero-based budget. NerdWallet explains that you assign a destination for every penny you bring into your household. So after all bills are paid and expenses accounted for, those “extra” dollars go specifically to pay off your debt.

Contact Your Creditors

It’s important, if you’re feeling overwhelmed with your debt load, to contact your creditors. Your credit score is gold, so don’t let it slip away. Keep up on payments — and if you can’t, let the bank know.

You may be able to get a deferment or forbearance on past due payments. In addition, they may be able to consolidate your debt and help lower the payments.

There are multiple ways to pay down debt. Of course, you want the fastest way to do it. There really is no simple solution; you just have to start chiseling away. The goal is to whittle it down to nothing, but most importantly, not let it pile up again!

~Here’s to Your Success!

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