Tips on keeping track of finances and paying debt down faster
When it comes to personal finances, we can all use a little advice from time to time. It’s easy to spend your hard earned money on the things that you want, but what about paying for the things you already have? Today, we will go over a few tips on how to keep track of your finances and pay down your debt faster.
When managing your finances, the first thing you want to do is create a detailed budget. Once your budget is set up, you will be able to physically see where all of your money is going every month. Start by making a list of all of your monthly expenses, things like: food, rent/mortgage, utilities, car payments, insurance, month to month loan payments, credit card payments, etc. Be sure to list all of your expenses, even the smallest ones like subscriptions. A good rule of thumb is to overestimate the cost of your expenses to make sure you will have enough funds to cover them all. You should review your list of expenses and look for opportunities to have prices reduced or be eliminated completely. Once your list is up to date, subtract your expenses from your monthly income amount to find out how much money you will have left over once all of your expenses are paid. Revisit your budget often to always know exactly where your money is going.
Now that you have created your budget and know exactly how much extra money you will have left after your expenses, you should create a plan to pay off your debt. If you want to get out of debt, you will need to make more than the minimum payment each month. The best way to get debt free is to pay off one balance at a time. Create a list of all of your debts - make sure to list the amount, the interest, the term and your monthly payments for each debt. Review your list of debts to determine what strategy you will use to pay it all off.
One option to consider is getting a month to month loan to consolidate your debt. A month to month loan can help by providing you with the funds needed to decrease your overall debt with an affordable monthly payment. Most month to month loans are unsecured, meaning you don’t have to put your car or home at risk for collateral. Most month to month loans are also repaid over an agreed term and have fixed interest rates, so you won’t have to worry about fluctuating interest. Choose opting for a month to month loan if you are needing to increase your credit score quickly for a large purchase, such as buying a new car or a house. A month to month loan can also increase your credit score by adding to your credit mix, which makes up about 10% of your score. 60monthloans, Inc. offers month to month loans with a soft credit check and no prepayment penalties! Apply today at: 60monthloans.com
When it comes to paying off debt, there are two different strategies you can use.
The first strategy is known as the Avalanche Method and it involves paying off the debt with the highest interest rate first. The benefit of this method is that you will pay down your debts while also saving money in the long run, due to the interest you won’t pay.
The second option is called the Snowball Method. It’s called this because you would be paying off the smallest debt first and then working your way to the biggest one, just like a snowball gains speed as it rolls down a hill. Decide which method you want to use and then create a Debt Payoff Plan listing the debts you will pay off in numerical order.
Now, when you are calculating your monthly budget, you can plan to put any extra money left over into paying back the next debt on your Debt Payoff Plan. Repeat this process until all of your debt is paid off!