Since 1988, William Elson has worked to help people achieve financial stability. William Elson encourages his clients at Legacy Financial Group to reach this goal by accelerating their debt repayment.
Debt repayment can feel insurmountable. Here are four steps to help get started.
1. Know exactly how much money you owe and how much you can afford to pay each month. Although it may be scary to calculate your debt, knowing how much you owe will help you formulate an accurate repayment plan.
2. List your debts from highest to lowest interest rate. Doing so helps you prioritize your payments. This is called the “debt avalanche” and will ensure the fastest repayment and the least amount of interest paid.
3. Make minimum payments on all debts except the one with the highest interest rate. Pay as much more than the minimum as you can afford on the highest interest rate debt until you have paid that debt off.
4. Add the previous debt’s minimum payment and extra payment to the minimum payment of the debt with the next highest rate until it has been paid off. Repeat this process with the next highest interest rate debt until all of your debts have been repaid.
If you need the guidance of a financial planner or more information about accelerated debt repayment, visit www.lfgplanners.com.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.