Paying Off Your Credit Card and Loan Debts More Quickly

It’s naturally in everyone’s best interests to repay their credit card and loan debts as quickly as possible without negatively impacting upon their lives, yet many people struggle with debt and find themselves unable to repay as much as they’d like.

There are many methods that can be used to repay debts more quickly, but before we discuss debt repayment methods like the ‘stack method’, let’s first look at the importance of creating a budget as a means of addressing unsettled debt.

The importance of creating a budget … and sticking to it

Creating a budget is an integral part of repaying debt and saving for the future and no one repays or saves as much as they’d like to without creating a budget and adhering to it.

  1. A budget acts as a roadmap and shows you where your money is going
  2. Creating a budget highlights areas where you’re spending too much
  3. Creating a budget helps you to build new and improved spending habits
  4. Creating a budget enables you to work out how much you can repay regularly
  5. Creating a budget can help you to accelerate your financial goals

Budgeting is one of the most important aspects of repaying debts quickly, plus it should also be used when planning to take on more debt so you know how much you can comfortably borrow and repay.

The stack method

If you haven’t heard of the stack method before you’re not alone. This is a look at the ‘stack method’ as discussed on Lifehacker.

  1. Cease taking on new debts

This is a mistake that many people make but it only exasperates the situation if you apply for a payday loan or use your credit card unwisely

  1. Prioritise your debts according to interest rate

Debts with the highest interest rates should be made your priorities, though this doesn’t mean neglecting your other debts

  1. Where possible lower interest rates

A notable example here is to use balance transfers by moving your credit card and debt to another bank

  1. Create a spending plan

This is part of the budgeting process and helps you to live comfortably whilst repaying your debts

  1. Draw up a repayment schedule

Creating a schedule helps you to avoid missing repayments and lets you know which debt needs repaying and when

  1. Motivate yourself by rewarding your progress

Every time you repay a debt in full reward yourself for your progress, though ensure any expenditure incurred is included in your spending plan

  1. Compound results

Once you repay a prioritised debt in full, move on to the next one and don’t forget to celebrate

  1. Don’t stress

Creating a budget and spending plan doesn’t mean there aren’t going to be surprises, so don’t stress if you exceed your spending plan limit on occasion.

This is an excellent way to repay your debts quickly and comfortably and it highlights just how important it is to keep motivated by rewarding yourself for your efforts and the progress you’ve made.

Five more tips to repay your debts more quickly

In addition to the excellent stack method, there are a number of ways that you can comfortably repay Car Cash Point loans and credit card debt more quickly, including the following five.

  1. Pay more than the minimum
  2. Sell possessions you no longer need
  3. Borrow against your life insurance
  4. Cut down on ‘luxuries’
  5. Arrange direct debit repayments with your creditors

It’s hoped the points made here prove food for thought and that you find them useful in repaying your debts more quickly.

Author: Car Cash Point is a company in the UK that helps people find solutions for raising short term finance without any credit checks. They specialise in logbook loans on cars.

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