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Advice on getting debts paid off quickly - The Bills.com Blog
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Advice on getting debts paid off quickly
Question: I have several Loans that have balances at 5,000 and maybe more. I want to pay off as soon as possible but how would be the best way to pay them off by paying ever 2 weeks?
Answer: The first rule in getting your debts paid off is not to accumulate new debt. Unless you stop borrowing more, any repayment plan is not going to work. First,make a budget of your income and fixed expenses so that you have an idea as to how much money you have to pay back these loan accounts. Bills.com offers a free budget guide available at https://www.bills.com/guide/ , this will be a good place to start.
You will need to make list of your outstanding debts and their respective interest rates. Now you will have an idea of what the total mount of debt is. Target the debts with higher interest rates first so that you pay them down first. Then, move to the debt that has a lower interest rate and so on. Generally, unsecured accounts such as credit cards and personal loans should be paid down, followed
by secured loans such as automobile loans. I am not including any mortgage payments in this plan.
You may choose to give each creditor an equal amount or you may choose to pay a larger portion to the creditors you owe the most money, or a larger amount to the creditors you owe the least money. The amount paid to each creditor is confidential. Creditors do not have to know the amount other creditors are being paid. You can use calculators such as the ones available on bankrate.com to calculate your payments and chart out your strategy
Once you make your plan, you will need to stick to it and monitor the progress
every now and then. If you feel that certain changes need to be made then you should implement the same. For more information and tips on debt help, I encourage you to review the debt help section of our website available at http://www.bills.com/debt-help/.
If you want to find some cool and free financial advice videos, go to: http://www.youtube.com/profile?user=BillsDotCom
I wish you the best in getting your debts paid of fast and hope the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
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