Let's be honest ..
It's like an invisible noose around peoples neck!
It's the subconscious weight that keeps holding us down!
Most people want to understand how to pay off their debts quicker.
And I am often asked, Dominique should I pay off my debts first before I start to accumulate my wealth and the simple answer is, no!
You do it simultaneously!
Working with my clients, paying off ALL debts is one of the first strategies we look at to maximise your cashflow, profits and wealth.
So I want to share with you 5 ways you can pay off your debt quicker:
- Pay more than the minimum – Most people will just pay the minimum not realising the impact this has on the interest you pay over the agreed period. This simple strategy will fast track your debt repayment and can be applied to Business Loans, Personal Loans, Credit Cards and your mortgage. By paying more than the minimum you could potential shave not off not only years it takes to repay debt by amount of interest you will pay over the lifetime off the debt.
- Implement Avalanche Method – This method is where you focus on using extra payments/money to pay off the loan/card with the highest APR first whilst making minimum payments on others. This can save you interest in the long term. Your debt reduction gains momentum as you pay off each balance and your focus turns to repaying the next loan/card again using extra payments/money to repay this debt quicker. List all your debts and sort them with highest to lowest APR's.
- Implement Snowball Method – This works similar to the avalanche method but this is a method where you pay off smallest balance first. Achievement can motivate you to accomplish more so this an work well if you have a number of credit cards. List all balances lowest to highest and focus all efforts and additional monies to paying off lowest balance first whilst making minimum on remaining cards. Then once you have paid off 1st card/loan, you move your attention and monies to the next lowest balance.
4. Balance Transfer – The balance of one credit card is moved to another to take advantage of lower interest rates or 0% APR. It works the way it sounds. You move your existing credit card balance. This could be an existing card or a brand new one. There are some considerations however, for example: Check how long introductory period lasts. Check what transfer fees are applicable. What is the interest rate after it ends? Whether any new purchases will be charged at a higher rate?
5. Debt Consolidation – This method allows us to consolidate all debts and have one payment instead of multiple payments, due dates and APR’s. This is the beauty of a consolidation loan. In some instances it will allow you to pay more down with that one payment than if they were all separate. You’re less likely to miss a payment or a mistake. It might even lower how much your minimum payment would be each month. This strategy is especially effective if you don’t rack up any new debts or credit card bills. You have to make a commitment to pay them off.
So, how quickly do you want to eradicate your debt and grow your personal wealth? Your business ultimately is the key!
What are you willing to do to grow and succeed in your business?
If you're ready to maximise your cashflow and profits, power up your sales and really start achieving your desired financial results find out here how I can help to support you and your business.