In the interest of giving you the information you need to make smart choices when it comes to your personal financial situation, we’re going to lay out a few of the most common debt-free living strategies that can save you a ton of money.
The key is to keep your debt in check.
In the interest, of course, of giving, here’s what to pay off every month.
Pay off your debt monthlyThe idea here is to pay your bills on time.
If you pay your mortgage monthly, you’re paying off your mortgage at the same rate every month (as opposed to monthly payments), so your monthly payment should be similar.
If your credit card is over a certain amount and you have to pay it back in full, then you’re overpaying.
It’s also important to remember that you can’t simply pay off a large chunk of your debt each month.
Your payments should be on a regular basis.
Don’t pay off your debts every monthPay off debt in monthly installments.
Instead, you should pay off some of your debts at a specific point in the year, or even in one or two installments.
This will help to keep you in control of your finances.
(In fact, if you’ve ever had a debt crisis that you didn’t control, you’ll find that this strategy will help you avoid some of the worst financial decisions.)
Keep track of how much you owe, and when you owe itPay your bills off one at a time.
Pay off your bills in installments, with the minimum payment being at least a month after your last payment, and you’ll avoid paying your debts over time.
This can help you get out of debt quicker.
(Don’t forget that you’ll still owe your credit cards, so if you need help paying them off, make sure you keep track of those too.)
Pay off some debt in one lump sumPay the remaining balance of your credit limit in one big lump sum payment.
If there’s no interest, the total amount you’ll pay will be less than what you owe.
You’ll still have to make the monthly payments, but you won’t owe any interest.
(You’ll also need to set aside money for emergencies, such as when you lose your job.)
When you need itThe only reason you need your credit report every time you make a new payment is if you’re trying to fix something or get a loan that’s being denied.
If that’s the case, then keep track and make sure that you pay off as much debt as you owe each month, no matter what the situation.
(There’s also a way to track your debt and keep it in check from year to year, but this method isn’t as easy as it sounds.)
Pay down debt slowlyPay down your debts slowly, as opposed to paying them at once.
This is especially important if you have an old credit card or a credit card with interest rates that are very high.
You can usually avoid paying a large amount of debt each year by paying off the debt as one lump-sum payment.
Pay off one lump in one monthIf you’re going for a one-off payment, you can usually get by without paying all your debts all at once, but if you are going to make a large payment, make the lump-amount payment in a single lump-free payment.
You will pay less interest each month than if you pay the debt in installments.
(But if you end up making more than one lump payment, then each payment will be a monthly payment.
See our tips for getting your debt down.)
For more debt-related tips, see our Debt-Free Living guide.
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