Rounding up debt payments by even $5, $10, or $20 can make a big difference down the line when it comes to debt payoff. Because you’re adding extra money in order to get those debt numbers down as quickly as possible.
Key point:
Make sure those payments are going towards the PRINCIPLE if you are able to!
That is SO IMPORTANT. This allows you to put money on the principle dollar amount you actually OWE instead of just the accruing interest. You don’t want your extra payment going towards interest while your principle stays the same, it’ll feel like you’ve done all that work for nothing. That can cause a more expensive payment timeframe.
While you are rounding up payments, you can simultaneously create a plan to pay down you debts.
Focus on high-interest debts first using the Debt Avalanche Method. This allows you to pay off the most aggressive high interest first. That way your debt gets cheaper as you pay them down to a lower interest rate.
OR
Try the Debt Snowball Method by paying off smaller debts to build momentum. You can then use the money that was paying the smaller debt to boost your next debt payments. Be sure to still pay the minimum on all other debts, we don’t want to be late on other payments.
The trick to all these methods is to not charge anything else onto the cards!! That defeats the purpose of trying to pay off debt.
Which method would you use when paying off credit card debt? I personally like the snowball method.
-Adele-
#RoundUp #roadtodebtfreedom #savemoney
#financialfreedom
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