This blog post is part of the Pay Down My Debt (PDMD) blog tour, sponsored by US Equity Advantage. PDMD is a solution that accelerates debt payoff and helps consumers monitor their credit and make smarter purchasing decisions. If you’re looking to pay off debt find out how Pay Down My Debt can help.
You don’t have to face debt alone. There are so many tools out there to help you pay off debt that you’ll wonder why you didn’t try to get out of debt sooner. If you need some help attacking your debt, then check out some of these tools to get you started.
A Custom Debt Freedom Plan
Your most powerful weapon against debt is a plan to systematically get rid of it. The plan we used was created by financial guru, Dave Ramsey. In his book, Total Money Makeover, you’ll learn how to create a custom plan to get out of debt. You’ll adjust your numbers to fit your income level and available resources to put towards paying off debt. There are tips on budgeting, creating an emergency fund and even negotiating debt down when dealing with creditors and bill collectors in this guide. This book is a must-have for anyone looking to get out of debt and build on a debt-free foundation for continued financial wellness.
Related reading: How I Side-Hustled Out of Over $81K in Debt
An Automated Savings Workflow
Automation is a powerful tool for saving and investing. To get out of debt, one of your first orders of business will be to create an emergency fund of at least $1,000. This will keep you from going further into debt when emergencies come up. As I always say, the one thing you can always plan for is unplanned expenses because they will always come up! One month it may be a car repair, while another month it could be a birthday outing for your child’s classmate- different month but the unexpected expenses will just keep coming.
In order to wean yourself from debt dependence, your emergency fund will be key. If you feel like you are already tight on cash, then automating your savings might help. Ask if your employer’s payroll processor will allow you to auto-deduct money from your paycheck into a separate savings account each week (most of them can.) If you can’t take parting with $50 or $150 at a time to build your cash cushion, then try a tool like Digit. Digit automatically deducts money from your checking account and stores it in an FDIC-insured account accessible via text commands on your phone. The amounts are small enough that you won’t miss them- $2.49 here or $5.67 there isn’t a whole lot of money in the grand scheme of things. To sign up for your own Digit account, click here.
An Automated Debt Repayment Workflow
Automation doesn’t just work for saving money, it also works for paying down debt. Pay Down My Debt is a tool that handles this automation for you in order to help you save on interest and pay off your debt faster. Here’s an example: On a 30-year, $325,000 mortgage at 4% interest, Pay Down My Debt can save you more than $36,000 in interest and pay off your loan 51 months earlier. You save more than four years of mortgage payments! Pay Down My Debt applies smart financial strategies – and then automates them – to reduce your outstanding balances far faster than would normally happen. It’s all done without disrupting your current borrowing relationships, or incurring additional lending fees.
Another bonus is that Pay Down My Debt also monitors your credit, gives you up-to-date information on your credit score, and provides you with two full credit reports annually. If you’d like to see if this tool could help you pay down your debt faster and improve your credit, sign up at the website here: Pay Down My Debt.
One of the most important tools we used to pay down debt was a monthly budget. Instead of wondering where our money went each month, we decided to give each dollar a mission and a purpose. There are many budgeting programs out there like Every Dollar, You Need a Budget, Mint, etc. These are all user-friendly programs that can help you track the money you are spending against your debt repayment plan. I am a nerd, so I found that Google Sheets (like MS Excel) worked well for us. Here is a free tutorial to set up your own debt repayment budget spreadsheet using Google Sheets. No matter what budgeting program you use, be sure to remain consistent in creating a monthly money plan and sticking to it.
Related reading: We Paid off Over $120,000 in Debt. Here’s How.
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