Get out of Debt is your first priority if you want to grow your wealth.
There can be Good and Bad Debt.
If a debt buy you assets that grow or produce income, that can be very good. Debt for stuff that goes down in value, not so good.
Get OUT of Debt!
Here are some powerful debt payoff strategies to help
you eliminate debt faster and regain financial freedom:
1- The Debt Snowball Method (Best for Motivation)
List debts from smallest to largest (ignoring interest rates).
Pay minimums on all but the smallest debt.
Throw every extra dollar at the smallest debt until it’s
gone.
Why? Move to the next smallest debt and repeat.
Quick wins keep you motivated!
2. The Debt Avalanche Method (Best for Saving Money)
List debts from highest to lowest interest rate.
Pay minimums on all but the highest-interest debt.
Attack the highest-interest debt aggressively.
Move down the list and repeat.
Why? Saves the most on interest over time.
3. The 50/30/20 Budget Approach
50% for needs (housing, bills, food).
30% for wants (entertainment, travel).
20% for debt payoff and savings.
Hack: If you’re deep in debt, reverse it—allocate 50% or
more to debt payments!
4. The 15% Extra Rule
Pay 15% more than your minimums on all debts.
Even a small extra payment can save years.
Automate it to stay consistent.
5. The Side Hustle Boost
Pick up a side hustle (freelancing, Uber, selling online)
Use all extra income **ONLY** for debt payments.
Example: If a side hustle makes $500/month, that’s an
extra $6,000/year toward debt.
6. The Zero-Based Budget (Every Dollar Counts)
Assign every dollar to a category.
Helps prevent impulse spending.
Use free tools like **YNAB or Mint** to track expenses.7. The Balance Transfer Hack
Move high-interest credit card debt to a 0% APR
balance transfer card.
Pay it off before the promo period ends (usually 12-
18 months).
Avoid new debt while doing this!
8. The Debt Consolidation Strategy
If multiple debts have high interest, consider a low-
interest personal loan to consolidate them.
This makes payments simpler and reduces interest
costs.
Ensure new loan rates are lower than your existing
debts.
9. The "No Spend" Challenge
Cut out non-essential spending for 30-90 days.
Redirect all saved money toward debt.
Example: If you normally spend $500/month eating out,
that’s $1,500 in 3 months for debt!
10. The Mortgage Accelerator (For Homeowners)
Make biweekly mortgage payments instead of monthly.
Results in one extra payment per year, cutting years off
your loan.
Lump-sum payments to principal also speed up payoff.
There may be more available strategies based on your current
situation.
If you would like to know more, please text or call us anytime.
We would be happy to create a budget or FREE debt payoff plan
for you!
For illustration purposes only. Please consult with an advisor or
professional for more details and advice.