Steve A. • March 2, 2019 • Newsletter
Last modified: April 24, 2019
I love this post. It inspires me. Thank you.
Starting with the debt with the least owing, pay this off and then with the interest you are now saving (by paying off the debt) add this towards paying off your next debt etc… lather, rinse, repeat until all your debts are paid off.
Some people may argue one can also achieve the same outcome by consolidating all your loans into one big loan at a lower interest rate. While this may be so in theory, the real issue is that people become more laissez-faire, thinking they can now slack off in their repayments or go out and spend more.
The human tendency is to again go out and spend on the card or on an unforeseen expense or emergency (if they don’t have an emergency expense savings account).Due to the minimum debt repayment set by the financial institution (compared to what the individual is paying as a whole now) and simply because its available, yes you guess it… it goes on to the credit card again and ultimately the borrower ends up in more debt.
By implementing the debt reduction method of one debt at a time; one’s confidence builds through reinforcement as the evidence of progress reveals itself, (releasing debt burden) one debt at a time.
Paying off debt and never owing it again is a truly liberating experience. I encourage you to embrace this approach if you are lost and confused when it comes to how to best pay out your debts.
Thank you for this article! I really enjoyed it. Habit building has not always been one of my strong suits and I’ve tried different ways to work on building habits. I like the approach of finding one habit and focusing my attention on building it. I left this article excited to start brainstorming my focus habit with my wife. This month, my focus is getting my meals ready for the next day the night before, setting up my coffee. Then, waking up on my first alarm, starting the coffee, and my day. It may sound like more than one goal. But I view the getting ready ready for bed/waking up process as one goal.
Thanks again for the great read!
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