4 Ways to Find Financial Freedom
July 3, 2019
Paying off loans and credit cards can take a long time and often feels like the biggest financial burden. However, if you prioritize your debt and stay motivated, you may be able to be debt free sooner than later. Here are four debt payoff methods to consider when planning your journey to financial freedom.
1. Refinance high-rate loans
One step you could take right away is to look at your high-rate credit card debt and think about transferring your balances to a lower-rate card. Store cards can have rates over 20% APR and moving your balances will help you immediately start saving money. Make sure you check the balance transfer fees before you start transferring balances. Transferring balances to a lower-rate card or card with an introductory APR can be a great way to minimize the interest you accrue while paying off your debt.
2. Avalanche your debt
This method also helps you save money on interest. Start with making larger payments by paying off your debt highest interest rates first. This means as you go along, you’re paying less and less in interest and more of your payments can go toward the principal.
3. Snowball your debt
The debt snowball is when you start small with debt repayment and get bigger. Layout all of your debt and pick the one with the lowest balance to tackle first. Once you pay that off, move to the debt with the next biggest balance and keep going until you pay off your largest debt. By starting small, you can build momentum and knock out small debts fairly quickly.
4. Consolidate all of your debt
To easily keep track of your debt, consider consolidating all of your debt into one loan and only make payments on that loan until it’s gone. While you can consolidate low- and right-rate debt in one payment but it might not work for you and you might pay more in interest, depending on your debt and credit score.
Tags: Credit Cards, Money Management, Tips and Tricks