Ideas to Pay Off Debt Faster

In this economy, every dollar counts. Chances are good that you find yourself in serious debt trouble because you’re having trouble earning enough to provide a modicum of comfort and decency for your family. You’re not alone: Millions of Americans are saddled with substantial debts through no fault of their own.

Most unsecured debt facilities like credit cards and business loans come with low minimum monthly payment levels that aren’t terribly difficult to meet. Unfortunately, these low minimum payments are designed to increase the amount of interest that the average borrower must pay over the life of his or her credit facility.

Even if you stop making new charges, it can take years to pay off a credit card balance using the minimum monthly payment feature. In the long run, this increases the card issuer’s profits while decreasing the amount of money that you’ll earn over the course of your lifetime.

However, minimum monthly payments can be seductive. If you continue to pay off your credit cards in this manner, you’ll have more money left over for discretionary purchases at the end of each statement period. In the short term, this will make you feel wealthier and may encourage you to make questionable financial decisions.

It’s important to remember that your credit card issuers want you to continue making just the minimum payments on your debts. If you want to beat them at their own game and get out in front of your debts, you’ll need to increase the rate at which you pay off your debts. In the long run, this is your best option for holding on to more of your hard-earned money and ensuring that your debts don’t create complications in your personal life.

There are plenty of ways for you to begin paying off your debts faster. Depending upon the amount of debt with which you’re faced, you may be able to reduce or even eliminate your debts using a self-guided method of debt relief.

There are several different such methods. One of the most popular is Dave Ramsey’s “debt snowball” technique. This clever tactic requires you to pay off your smaller debts ahead of your larger ones in order to gain the confidence necessary to attack the remainder of your income-sapping debt load. Many popular-finance experts rave about the “debt snowball” method and recommend similar techniques to their followers.

Alternatively, you could flip the equation and choose to pay down your high-interest debts ahead of your low-interest obligations. If you can execute this properly, you may save hundreds of dollars in interest charges over the life of your debt relief plan.

No matter how you choose to begin paying off your debts faster, you’ll need to stop making new charges on your credit cards and switch to cash for most purchases. In addition, you’ll need to create a sustainable household budget that may require you to make some tough sacrifices. Although this will be difficult at the outset, you’ll eventually thank yourself for maintaining your discipline in the face of such adversity.

Self-guided debt relief isn’t for everyone. If your debt problems are simply too deep for you to tackle on your own, you have several “managed” debt relief options. The most popular of these are debt consolidation loans, credit counseling and debt settlement.

Debt consolidation loans are large credit facilities that exist for the express purpose of paying down large tranches of unsecured debts. When you take out a debt consolidation loan, your lender will immediately pay off your unsecured creditors and then bill you for the balance of this payoff.

In many cases, debt consolidation loans come with lower interest rates than the expensive credit cards and business debts that they replace. However, they also come with long repayment periods that can exceed 60 months. As such, they’re not a particularly fast way to pay off debt.

Credit counseling also involves reduced interest rates. When you sign up for a credit counseling program, your counselor will negotiate directly with your creditors to reduce your interest rates. Instead of making multiple payments to different card issuers each month, you’ll be responsible for just one payment to your credit counselor.

Unfortunately, credit counseling also takes years to complete successfully. If you can’t afford to wait seven years to clear your backlog of obligations, call National Debt Relief for more information about our unrivaled program of debt settlement.

Debt settlement is recognized as a powerful, fast and effective alternative to bankruptcy. Unlike credit counseling and debt consolidation loans, this process can wrap up successfully in just 24 to 48 months. Since debt settlement reduces the actual principal balances on your debts, it could save you thousands of dollars during this time frame. Best of all, you won’t have to keep making monthly credit card payments or fend off harassing phone calls from your creditors or collections agents.

To learn more about National Debt Relief’s debt settlement options, call us today or fill out the free form at the top of your screen. We’ll answer any questions that you might have and can sign you up for a custom-tailored debt settlement program on the spot. Don’t wait another day to make the most important phone call of your life.