Pay Off Debt: How to Pay Down Debt Faster

PAY OFF DEBTHow to Pay Down Debt Faster
@ZinaKumok

Join our #CreditChat every Wednesday at 3 p.m. ET.
This week, we talked about ways to improve your credit scores.
ex.pn/paydebt

What are ways we can fall into debt?
#CreditChat
Wednesdays | 3 p.m. ET

#CreditChat
Wednesday | 3 p.m. ET
“You can fall into debt by trying to keep up
with others. Be your own financial person!”
- @FinanceLacey

#CreditChat
“People fall into debt by not planning for
unexpected expenses. An unexpected event
happens and we use debt to fill the gaps.”
- @SavingFreak

#CreditChat
“Debt is necessary for most of us (i.e. mortgage, car loan).
The problem is when you acquire more debt than you can
manage.”
- @LeslieHTayneEsq

#CreditChat
“Not paying attention to how fast it adds up.
Thinking of using the credit card instead of
waiting and saving money.”
- Jeanne Kelly, @creditscoop

How can debt impact us?
Financially? Emotionally?
#CreditChat

#CreditChat
“Debt can be overwhelming. It can keep us
from reaching our financial goals as well.”
- @FrogskinU

#CreditChat
“Debt can be a big emotional burden. Stay
calm and seek advice when you need it.”
- @JustOnePay

#CreditChat
“Debt impacts all aspects of our lives; it impacts us
emotionally and can create stress that even affects our
health!”
- @KOFETIME

#CreditChat
“If you pay it timely, it can be to your benefit
as far as credit goes.”
- Ashley Bales, @saveforgem

What holds many people back from
getting out of debt?
#CreditChat

#CreditChat
“Existing habits and systems that we
struggle to change can keep us in debt.”
- Bill, @FamZoo

#CreditChat
“Many people believe debt is part of life. It’s become so
usual to buy now and pay later we don’t see debt as an
emergency.”
- Andie, @moneyinmy30s

#CreditChat
“People are held up from paying off debt by
not having a plan. You need to know now
how much debt and do monthly budget.”
- Paul Moyer, @SavingFreak

#CreditChat
“Social pressures can play a big role, which
can lead to buying with money you don’t
have.”
- @KOFETIME

How do you choose what debt to pay
off first? Smallest debt? Interest rate?
#CreditChat

#CreditChat
“The math says you should pay off the debt
with the highest interest rate first because
it’s costing you the most.”
- @StacySmith0615

#CreditChat
“It can feel like a victory to see a debt completely paid, so
maybe focus on the smallest one first.”
- @FedChoiceFCU

#CreditChat
“Psychologically, paying off the smallest
debt first then the next smallest debt really
pushes people to keep going.”

How much should you save (emergency
fund) before tackling debt?
#CreditChat

#CreditChat
“Based on your situation start with 1)
savings, or 2) paying off debt, or 3) take the
middle road.”
- @AirForceFCU

#CreditChat
“Experts believe you should have enough money in your
emergency fund to cover at least 3-6 months’ worth of
living expenses.”
- @StacySmith0615

#CreditChat
“3-6 months of your expenses is the
guideline. Once you have an emergency
fund you can focus on paying off debt
faster.”
- @Purefy

How do you track your debt pay-off
strategy?
#CreditChat

#CreditChat
“You can use apps or an excel spreadsheet
and organize the amounts from smallest to
biggest or highest interest to lowest.”
- @care4yourfuture

#CreditChat
“Programs like Mint help you see everything in one place,
or even a simple Excel sheet can keep you organized.”
- @LeslieHTayneEsq

#CreditChat
“Monitor your accounts online or with
statements. Create a plan to pay off debt but
don’t be afraid to adjust as needed.”
- @Purefy

#CreditChat
“Find what works for you to track debt
payoff - some people are more comfortable
with pen and paper and other like apps.”
- @kevincswanson

What are ways to stay motivated to
keep paying down debt?
#CreditChat

#CreditChat
“Set mini-goals. The success of meeting a
small goal can keep you moving forward to
the next goal.”
- @StacySmith0615

#CreditChat
“Find out how much extra money you’ll have
a month when debt is gone. That’s a big
motivator for me!”
- Writer Leah Ingram, @suddenlyfrugal

#CreditChat
“Track your progress. Celebrate milestones. Get an
accountability partner who gives you moral support.”
- @AirForceFCU

#CreditChat
“Reward yourself when you reach a debt
payoff milestone - something small and
meaningful that gives a sense of
accomplishment.”
- @kevincswanson

What do you think about debt
consolidation?
#CreditChat

#CreditChat
“Debt consolidation is only useful if you
have learned your lesson. Consolidating
debt and then taking out more does no
good.”

#CreditChat
“Depends on what you mean by ‘consolidation’. Consolidating
into one loan at lower rate and all reported paid can be good.
‘Consolidation meaning ‘debt settlement’, will hurt credit and
should be a last resort.”
- @Rod_Griffin

#CreditChat
“Consolidating can simplify payments but
doesn’t save money. Refinancing is how to
save and often includes consolidation.”
- @Purefy

What resources of apps can help those
budgeting or paying down debt?
#CreditChat

#CreditChat
“Check out @YNAB for budgeting! And of
course @JustOnePay, so you never miss a
payment.”
- @JustOnePay

#CreditChat
“I like Mint as well! I think a piece of paper taped to your
refrigerator or mirror is a good reminder everyday.”
- Ashley Bales @saveforgem

#CreditChat
“Mint has a free financial goals section
(with your account) on their site to help
with paying off debt.”
- @kevincswanson

Any final suggestions for those looking
to pay down debt?
#CreditChat

#CreditChat
“There are numerous ways to get out of
debt, figure out the plan and methods best
for you and seek out help from others.”
- @care4yourfuture

#CreditChat
“First step is to stop spending. Seems obvious but is still
a common mistake.”
- @Rod_Griffin

#CreditChat
“The three steps to debt free success are:
streamline your budget, make bigger
payments and roll in savings!”
- @debtcom

#CreditChat
“Focus on that end result of financial freedom and the
result it will have on the next generation!”
- Ashley Bales @saveforgem

#CreditChat
“Paying off debt will give you more financial
freedom in the future. It’s worth it.”
- @JustOnePay

#CreditChat
Check out all the resources and tips shared:
ex.pn/paydebt

#CreditChat
Join Us Every Wednesday at 3 p.m. ET.
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Pay Off Debt: How to Pay Down Debt Faster

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Pay Off Debt: How to Pay Down Debt Faster