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Friday, 27 March 2020 11:05

How To Pay Off Your Debt Without Raising Your Monthly Budget Featured

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This system works if you are like most people that have multiple debts, a few credit cards, car loans, student debt, mortgage etc etc.

Lets look at credit cards.. most people send a bit more than the actual minimum due to all their cards...

The best way to actually eliminate you debt is to write down all your debt from smallest amount to largest...

Then write down the minimum payment next to it and write down how much you are actually sending to that card monthly....

Subtract the minimum due from the amount you are currently sending and put the difference in another column...

Do this for every debt you are sending more than the minimum montly payment to.....

Then add up all the additional money over the minimum due that you are sending in total.....

NOW send that total amount to your smallest debt in addition to it's minimum due ......

 

So lets say you have 4 credit cards you are sending an additonal $50 a month to... so you are actually sending an extra $200 a month spread out over the 4 cards....

To pay off debt just send that extra $200 a month to your lowest debt that has lets say a minimum due of $35 ....so you are sending them now $235 each month and only the minimum due to all others..

You will pay off that card soon and you didn't change your monthly expenses....

Then when the card is paid off you add that payment of $235 (the total you were sending to the previous lowest balance card) to the next lowest balance card that lets say that one has a minimum due of $75 a month... you are now sending them $310 a month...

When that one is paid off you send the additional $310 to the next card that has lets say a $100 minimum due monthly... now you are sending them $410 until that is paid off and then you do that with the fourth card that has a minimum due of lets say $125 a month... you are now sending them $535 a month... ..... continue this until all cards are paid off the total amount is now going to your next credit/loan... lets say a car lone... at this point you should be sending an additional $535 a month to your car loan which has a monthly payment of $365 a month ....  you are now sending them $900 a month (make sure you send the additional $535 as a seperate payment marked "principle only").... soon your car loan will be paid off and you can send the additional $900 to your mortgage (AGAIN....make sure you send the additional $900 as a seperate payment marked "principle only")......you can see how this will quickly pay off your debt without increasing your budget

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