Spring Cleaning For Your Debt

I hope that you read the last 3 spring cleaning tips for your financial house. Because it’s more important to keep our financial life tidy, than defrosting your freezer, if you know what I mean.

Today I have 5 tips that will help you to dump your debt, and keep more of what you earn each month.

#1. Make a list.

On a sheet of paper, write down all of your debt. And organize it with the highest interest debt at the top, and the lowest at the bottom.

#2. Pay off highest debt first.

Plan to pay off the one debt account with the highest interest first, by applying any extra money you have to the minimum payment. You will want to use your budget worksheet from the first post we covered to find the extra money.

#3. Remember to make the minimum payments to other debts.

While you are focusing on paying off your highest interest debt.

#4. Roll that payment into the next.

Once the debt with the highest interest is paid off, roll the entire amount that was going to that debt into the one with the next highest interest rate. While making minimum payments on your other debts.

#5. Get credit for principle payments.

Be sure to check that the banks are applying ALL of your extra payments to the principle, and not to future payments.

This will mean the difference between you paying off your debt faster, and saving a mountain of interest charges… Instead of paying off your debt faster, but not saving a dollar in interest payments.

Click here for the best way to clean your financial house

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