Which bills to pay off first how to#

There are a few different tactics you can use to tackle your debt. Once you know exactly how much you owe, you’re ready to strategically attack your debt. To do this, you need to come up with a plan of action. What if you could use your money to create a life you love? Learn how with the Rich Life System.

Which bills to pay off first how to#

Once you know how much you owe, the next step is learning how to get out of debt. From this day that number is only going to go DOWN.There is a large group of people with MORE debt than you.If your total debt number seems high, remember two things: It’ll help you find out how much you owe to each company and what your interest rates are.Ĭongrats! Taking the first step is one of the hardest parts - now you’re well on your way to a Rich Life. Use this tool to track it (it’s the second link on this list). You can do the hard work now, or the impossible work later. We challenge you now to step up and own your debt. Just look at the back of your credit cards for their number, call them, and ask them for the amount of debt you owe, the APR, and the monthly minimum payment on the card. In fact, you can get credit card companies to help you. Then you’ll see that it’s not hard to end this bad habit. It might be painful to learn the truth but you have to bite the bullet. The reality is that minimum payments dig your hole even deeper. This is exactly what credit card/loan companies want - for you to hide from your statement every month and just blindly send them the minimum payment thinking you’re getting out of your debt. They’d rather bury their heads in the sand than look at the reality of the situation and do something about it. This boils down to the fact that people feel guilty about their debt.

You wouldn’t believe how much money people waste by skipping this step and blindly paying off any bills that come in with no strategic plan. That’s why we want to clear debt ASAP! Find out how much you owe All of that money that’s tied up in debt repayments could be going to your retirement accounts or other savings goals. When you’re swamped by debt, it makes it much harder to save for the things that really matter.

Your paycheck disappears into debt, making it harder to boost savings.

It can affect your credit report and make it harder to get credit in the future e.g.

It can impact your mental health - feeling overwhelmed by debt is incredibly stressful.

In fact, this type of debt can have many negative effects on your life. But long-term debt where you feel like you’re constantly buried doesn’t have to be your reality. Why is paying off debt important?ĭebt is a fact of life for many. Step one is to face your debt head-on and tackle it with a strategy. What you need is a solid strategy (and to stop burying your head in the sand).

First, you need to plan how to get out of debt. If you’re wrestling with car loans, student loans, mortgages, and credit cards, this one’s for you. It can feel like there’s no way to dig yourself out.īut don’t worry, there’s definitely a light at the end of the tunnel. No one likes to be in debt, and yet many of us live in it for years.