5 easy ways to pay off debt

Find out here how to pay off your debt and finally achieve financial independence.

Before you start repaying debt, take a moment to identify the kind of debt you have – whether it's credit card debt, student loan debt, mortgage debt, or something else – and determine how much debt you have. Here are some tips for you!

1. Create a budget

First things first: budgeting. You can use personal finance tools like Mint.com, or make your own Excel spreadsheet that includes your monthly income and expenses. Then scrutinize those budget categories to see where you can cut costs.

2. Pay off the most expensive debt first

Sort your credit card interest rates from highest to lowest, then tackle the card with the highest rate first. By paying off the balance with the highest interest first, you increase your payment on the credit card with the highest annual percentage rate while continuing to make the minimum payment on the rest of your credit cards.

3. Pay more than the minimum balance

You so need to pay more than the minimum balance on your credit card statements each month, if not, you are only prolonging the debt. Stay focus and put all of your money there, it’s important! 

4. Take advantage of balance transfers

If you have a high-interest card with a balance that you're confident you can pay off in a few months, move the debt to a card that offers a zero-interest balance transfer.

5. Put work bonuses toward debt

Job bonuses are not for going shopping anymore. Just grow up and save it to pay your debt. It's more important to fix your financial situation than own the latest fashion trends.

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