Debt-Free Goal
Are you having trouble paying off debt? We know debt can bring so much stress and strain to anyone. It feels like your options are very limited especially when debt is accumulating and eating into your income. Debt can keep you away from your financial goals, so it is necessary to make paying off debt a priority.
Tips on how to pay off Debt
The Snowball Method
The “snowball method” is a term used by Dave Ramsey to pay off debt from the smallest to the largest amount. The name refers to the strategy of starting with something small and building it into something bigger, the way a snowball is made.
1. Start paying off the smallest amount to help you see immediate progress on your debt repayment.
2. Once this debt is paid off, move onto the next smallest debt on your list. Now, you will have fewer minimum payments to make every month.
3. Continue to make the minimum payment on everything else.
4. Put any extra funds you have toward the debt with the smallest balance.
5. Continue until you have paid off all your debts.
The “snowball method” is a term used by Dave Ramsey to pay off debt from the smallest to the largest amount. The name refers to the strategy of starting with something small and building it into something bigger, the way a snowball is made.
1. Start paying off the smallest amount to help you see immediate progress on your debt repayment.
2. Once this debt is paid off, move onto the next smallest debt on your list. Now, you will have fewer minimum payments to make every month.
3. Continue to make the minimum payment on everything else.
4. Put any extra funds you have toward the debt with the smallest balance.
5. Continue until you have paid off all your debts.
Debt Stacking or the Avalanche Method
In contrast to the snowball method. This strategy focuses on prioritizing debt with the highest interest rates that will allow you to save the most money in the long run.
1. Make the minimum payment on every debt.
2. Put extra funds you have toward the debt with the highest interest rate.
3. Once this debt is paid off, move on to the next highest interest rate while continuing to make the minimum payment on everything else.
4. Put more money toward paying off each subsequent debt because you have one fewer minimum payment to make every month.
5. Continue until you have paid off all your debts.
In contrast to the snowball method. This strategy focuses on prioritizing debt with the highest interest rates that will allow you to save the most money in the long run.
1. Make the minimum payment on every debt.
2. Put extra funds you have toward the debt with the highest interest rate.
3. Once this debt is paid off, move on to the next highest interest rate while continuing to make the minimum payment on everything else.
4. Put more money toward paying off each subsequent debt because you have one fewer minimum payment to make every month.
5. Continue until you have paid off all your debts.
Student Loan Adjustments
If you have student loans, you may be able to have the amount you owe adjusted based on your income or financial situation, particularly if you have loans from the federal government.
Based on experience, this can help you lower your monthly payments while you focus on paying off other debts or improving your financial situation.
Once you have eliminated your other debts, you can start to make higher payments on your student loans.
If you have student loans, you may be able to have the amount you owe adjusted based on your income or financial situation, particularly if you have loans from the federal government.
Based on experience, this can help you lower your monthly payments while you focus on paying off other debts or improving your financial situation.
Once you have eliminated your other debts, you can start to make higher payments on your student loans.
Debt Consolidation
Having trouble paying too many debts? You can consolidate them into a single debt. This can be a personal loan that covers the cost of your current debts with a single payment every month.
Consolidation simplifies your debt, but it can come in high fees or variable interest rates. It's best to speak with a credit counselor that can assist you based on your financial situation.
If you decide to use a debt consolidation loan, avoid taking out additional loans or open new credit cards before it is fully paid. Otherwise, the cycle of not being able to repay your debt will just continue.
Having trouble paying too many debts? You can consolidate them into a single debt. This can be a personal loan that covers the cost of your current debts with a single payment every month.
Consolidation simplifies your debt, but it can come in high fees or variable interest rates. It's best to speak with a credit counselor that can assist you based on your financial situation.
If you decide to use a debt consolidation loan, avoid taking out additional loans or open new credit cards before it is fully paid. Otherwise, the cycle of not being able to repay your debt will just continue.
Using Life Insurance to Pay Off Debt
Have you heard of people using their Life Insurance Policy for Financing or Private Banking? You can certainly use life insurance to pay off debt as well.
This practice has been around in the U.S. for over 50 years and Canadian families and businesses can also take advantage of this.
Using the cash values that build up in your life insurance policy or fund that you can put through into a new policy that builds up cash value quickly can be your alternative way to pay off debt. This method gives you more control, flexibility of repayment and most especially the quicker way to pay off debt on your terms.
Note: Borrowing or withdrawing from your cash values have advantages and disadvantages, it's deemed necessary to sit with your insurance advisor/financial advisor to better understand the holistic approach in relation to your needs.
Have you heard of people using their Life Insurance Policy for Financing or Private Banking? You can certainly use life insurance to pay off debt as well.
This practice has been around in the U.S. for over 50 years and Canadian families and businesses can also take advantage of this.
Using the cash values that build up in your life insurance policy or fund that you can put through into a new policy that builds up cash value quickly can be your alternative way to pay off debt. This method gives you more control, flexibility of repayment and most especially the quicker way to pay off debt on your terms.
Note: Borrowing or withdrawing from your cash values have advantages and disadvantages, it's deemed necessary to sit with your insurance advisor/financial advisor to better understand the holistic approach in relation to your needs.
Disclaimer: This page has a combination of opinions and ideas based on the advisor's and client's general experience. It does not seek to include legal or tax advice. It is up to the reader to do their own research or contact their nearest insurance council, banks, province or federal representative related to student loans consulting, debt repayment professional for a more comprehensive information.