Debt: Adios! Dump the Debt

Now that we’re back to work and are seeing the bills from our seasonal shopping we may need to take a nap!  Instead, take charge (oops) of your bills and get rid of them.

Here are a few, easy ways to retire debt.  This video summarizes what I have taught me kids and clients for years:

  1. Select the highest interest rate debt and throw all of the money you can at it’s balance.
  2. Make minimum payments only, on all of the other cards so you can focus on #1.
  3. When #1 is gone tumble down to #2 highest rate and do the same thing. You’ll be able to pay even more on this one because #1 is gone.
  4. Put the cards away!  Only use them once or twice a year – and then, only on something you really NEED.
  5. Remember: those who understand interest, charge it. Those who don’t understand interest, pay it.

Also, make sure to put, say, 10% of your paycheck into savings and don’t touch it.

2016 can be a liberating year. Make it happen.

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