Have you been pissed off having to use a credit card again after just paying it off? Will it ever look like it's a never-ending circle of charging it up, repaying it, and then loading it up again? It is exactly what I indicate by the "Rubber Band Debt Effect." Paying off debt only to use it again where you feel like you never quite get ahead. Does this seem familiar? If so, you are like many, many others I've spoken with who wish to save and pay back their loans, and feel like they should be further ahead than they are.
Here's why it occurs....
When you use traditional methods taught by "financial experts" by fully repaying the debts only with lowest amounts or highest rates of interest, you will find yourself stuck in this trap. My experience has demonstrated my clients and I that it will take nearly twice as long (and you'll be more discouraged) using these old, worn out, stale methods. Rather, focus on paying down only one loan at a time that frees up the most money with the smallest amount of dollars, while not depleting your financial savings.
You need to do it with balance. Most people that apply Dave Ramsey-like methods use all or most of their savings to pay off a car loan, for example, and then one thing will undoubtedly come up that will cause them to charge money on a high interest bank card. That seems outrageous, doesn't it? Pay off a low interest car loan only to have to charge up a high interest credit card? This Occurs At All Times!
Have some savings first - at least one month's of your expenses is desired. Then, only focus on paying down the one mortgage that has the highest settlement for the balance. Once that's paid off, move to the following one and so on and so forth. Whenever unexpected expenses occur, AND THEY WILL OCCUR, make use of your savings to pay for it. When this happens, be sure to build your savings backup Prior to starting paying extra to your loans.
Reward Tip - Don't pay extra to mortgages, auto loans, school loans, or any loans where the payments remain the same as you pay them down. Spend less money to pay them off in full.
Paying down your loans using the right balance and knowledge will assist you to keep your peace of mind while paying off your loans faster and safer than conventional methods. If you haven't done this, download our special report on methods to have an extra $500 every month WITHOUT living off rice & beans, and pay back your financial loans even faster! By having more monthly income in your own life, you'll have greater financial peace today!
Here's why it occurs....
When you use traditional methods taught by "financial experts" by fully repaying the debts only with lowest amounts or highest rates of interest, you will find yourself stuck in this trap. My experience has demonstrated my clients and I that it will take nearly twice as long (and you'll be more discouraged) using these old, worn out, stale methods. Rather, focus on paying down only one loan at a time that frees up the most money with the smallest amount of dollars, while not depleting your financial savings.
You need to do it with balance. Most people that apply Dave Ramsey-like methods use all or most of their savings to pay off a car loan, for example, and then one thing will undoubtedly come up that will cause them to charge money on a high interest bank card. That seems outrageous, doesn't it? Pay off a low interest car loan only to have to charge up a high interest credit card? This Occurs At All Times!
Have some savings first - at least one month's of your expenses is desired. Then, only focus on paying down the one mortgage that has the highest settlement for the balance. Once that's paid off, move to the following one and so on and so forth. Whenever unexpected expenses occur, AND THEY WILL OCCUR, make use of your savings to pay for it. When this happens, be sure to build your savings backup Prior to starting paying extra to your loans.
Reward Tip - Don't pay extra to mortgages, auto loans, school loans, or any loans where the payments remain the same as you pay them down. Spend less money to pay them off in full.
Paying down your loans using the right balance and knowledge will assist you to keep your peace of mind while paying off your loans faster and safer than conventional methods. If you haven't done this, download our special report on methods to have an extra $500 every month WITHOUT living off rice & beans, and pay back your financial loans even faster! By having more monthly income in your own life, you'll have greater financial peace today!
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