How to Pay Off Debt? | Financial Advisor Steps To Pay Your Debt

How to Pay Off Debt?

07:54 AM July 30, 2019

Drowning in debt, it is the worst feeling in the world and I know from experience. Your spouse wants nothing to do with you, you feel like a failure, and you have no idea what you’re going to do.

Does this sound familiar? If so, you’re not alone. I am one of the millions of people who thought that there was no light at the end of their tunnel.

There is great news though. You can get out of debt and it is not painful at all.

Paying off one’s debt is easier now more than ever. There are a lot of debt settlement companies out there who are willing to help you and guide you in the right direction.

Ways To Pay Off Debts
Ways To Pay Off Debts

Dave Ramsey is one of the most well known financial advisors when it comes to paying off your debts. Many people have used his information and models to help themselves pay off the debts that they have.

He has the seven baby steps to get out of debt for good. One of those steps is to get out of debt by using the debt snowball. This basically says to pay off all of your debt except for the house.

Another one of Dave Ramsey’s steps to paying off your debt is to save at least $1,000 for a starter emergency fund. Make a goal to save up as much as you can and as quickly as possible.

This fund will cover everything that you may not be expecting in life. If your car needs to be fixed, where does this money come from? Your emergency fund could be helpful in this event.

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Make sure to keep your emergency money in a separate checking account, so you don’t spend it. Along with this step, you also need to figure out how you will get this fund.

By making a budget, you’ll be able to see where you can cut corners and save a few bucks here and there.

The third baby step to get out of debt quickly is to save for your child’s college fund. If you have a child or children, you are aware of how expensive it is to raise children these days.

A lot of parents have nothing saved up until their child graduates from high school. By that time, it’s a little bit late. Some experts say to begin saving the day that you know you’re having a child.

Let’s face it, most of us, can’t afford to do that, however, saving a few bucks a day or a week can really add up. One way to save is by starting a 529. This is a college savings plan or an Education savings account.
Finding someone in investing can be a huge help and they can guide you in the right direction as far as savings go.

Get Out Of Debt Using a Debt Snowball

Personal Finance - How to pay off debt

This is a great way to look at how much you owe and how much you can pay towards your debt. Dave Ramsey mentions that in order to get yourself out of debt, you have to change some of your spending habits.

Ramsey says that you should not worry about the interest rates when looking at your debt right now. If you have two debts that are the same amount, the one with the highest interest rate should be paid off first.

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One way to get the debt snowball started is to pay as much as you can on your debts with the smallest balances. Making little or minimum payments on your larger debts and put as much as you can into paying the smaller ones off first.

When you see how much closer you are to being debt-free, you’ll be very happy and feel accomplished with each debt that is paid off.

When you have paid off one debt, then move on to the next one. When you begin paying more and more debt off, you’ll see how quickly you become free from debt.

Use Credit Card Debt Calculator

To help you figure out exactly how much debt you have, why not try using a credit card debt calculator. This calculator will show you how long it will take you to pay off your debt from your credit cards.

There are many options on the calculator. You can put in just paying the minimum payments, a fixed amount, or you can tell the calculator when you want to be debt-free.

You can add student loans, medical bills, personal loans, IRS debt, unsecured debts, and mortgages into the calculator as well. When you enter this information into the debt calculator, you’ll be able to see how easy it will be to get your debt paid off.

Once you have the information you need, debt payoff maybe a little scary, but once its all said and done, you’ll be free from all the financial hardships and you’ll be able to breathe again.

Debt Relief Programs

There are many ways to get out of the debt you are in right now. I am living proof. I’m gradually working my way out of the debt that I am in. I am a member of In Charge debt solutions.

In Charge debt solutions is a debt relief company. They help you become debt-free without using any loans. You will be provided with your very own credit counselor.

Your credit counselor will give you a call and you two will then discuss your financial situation.

Once this has been discussed, you and your counselor will talk about the monthly payments and how to reduce them, lower interest rates, and consolidate your bills.

You will no longer be bothered by awful bill collectors, and you can build a realistic plan that is very easy to follow.

I was drowning in debt and needed a way out. I’m still settling my debts, but In charge is helping me along the way. I did not have any car loans that I owed, which was helpful. However, I had college loans, credit cards, and too much debt.

They will sit with you and discuss your debt management plans and give you peace of mind as far as your debt goes and increase your credit score slowly, but surely.

When I first began with In Charge, they did mention making settlement offers to some of my cards. The counselors will take care of all communication to your creditors from day one.

You do not have to speak with your card companies any longer. Instead of a balance transfer, you can simply consolidate all of your credit cards into one payment that you pay each month.

When you consolidate your credit cards, you do not have to apply for a debt consolidation loan. Simply communicate with In Charge, pay on time, follow their rules, and you’ll be paid off in no time.

I am so happy that I made the choice to call them. My life has been forever changed with so much less stress in my life. My spouse is even happier with me too.

Being debt-free will be a great feeling when you get there. Life is not over by any means and if you keep on pushing through the debt, you will get there.

Once you have less stress over having debt in your life, you will be able to breathe again. Your family will be much happier too. You and your spouse or loved one will be pleased with your progress too.

Dave Ramsey even has a special plan for you as an individual of you go to his web site. You answer a few questions and then you’ll get a financial plan emailed to you to start your first step in living life debt-free.

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