How to Pay Off Debt FAST
Even on a Low income
In this video, Jennifer talks about how to clear debts fast, but with minimal finances available:
Money Stacks Method spreadsheet
Outgoing Costs as low as possible
The amount of money they were paying out every month on debt, they were able to use on money on their terms
Mindset of Money
Jennifer advises people to not feel guilty for being in debt.
She also recommends me to keep back a certain amount of money so it’s effectively not all used to pay back debts so that Positive uses can compliment the need to clear debts as soon as possible.
The only downside is that Interest is required in addition to the debt, itself, but negotiating with Creditors may result in a more manageable level of Interest.
Know Your Debt
Determine the total amount of debt you owe and which businesses you owe money to so that you can keep track of how much money you need to pay back each business and the grand total of all debts added up.
Also, be familiar with how much Interest you need to pay in the calculations.
Build Wealth
Create a small buffer to avoid adding to more of the debt.
Keep back say £500 ($643.50) or £1,000 ($1,287) on an account so that, whatever happens, you have instant access to cash instead of relying on a Financial Institution.
Budget and Debt Management Plan
Organize a Budget so that you don’t spend more than you need to in order to tackle the debt.
Having a Debt Management Plan in place will also enable you to ensure you’re keeping up repayments at the designated frequency, whether weekly or monthly.
Auto Pilot Money Spreadsheet System
Jennifer has created an Auto Pilot Money Spreadsheet System which simplifies means of analyzing and eventually clearing all debts.
Fastest Debt Clearance Approach
By clearing the debt as quickly as possible, the amount of Interest is reduced so that the total Interest is much less than if it’s spread out over a large number of years.
Tracking Your Money
Use a notebook and pen to analyze where your money is going every month to be mindful of your spending choices to write down whenever you receive or spend your money.
Excel Spreadsheet or Paper Budgeting
Every week or every month, become acquainted with how much money is being paid out and how much money is being paid in.
Ways of Repayment
* The Snowball Method
Dave Ramsey champions this method (thanks to Christina Piccoli from Medium for recommending Dave and Ramit Sethi)
* The Avalanche Method
* The 10% Rule
Cheap v Frugality
Cheap advises viewers that there would be spending a minimal amount of money whereas Jennifer recommends the Frugality option if it adds value.
In this way, life is still enjoyable, do as much as you can to pay off the debt by investing and creating businesses so you’re ready to increase your money.
Create a Life Changing Financial Plan — From $20k debt to Wealthy in 5 years and beyond
How to Pay Off Debt Fast — STAY Debt Free FOREVER even on low incomes
Should I Pay Off Debt or Invest?
