Post on 16-Apr-2017
PAY OFF DEBTHow to Pay Down Debt Faster@ZinaKumok
Join our #CreditChat every Wednesday at 3 p.m. ET. This week, we talked about ways to improve your credit scores.
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What are ways we can fall into debt?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“You can fall into debt by trying to keep up with others. Be your own financial person!”
- @FinanceLacey
#CreditChatWednesday | 3 p.m. ET
“People fall into debt by not planning for unexpected expenses. An unexpected event
happens and we use debt to fill the gaps.”
- @SavingFreak
#CreditChatWednesday | 3 p.m. ET
“Debt is necessary for most of us (i.e. mortgage, car loan). The problem is when you acquire more debt than you can
manage.”
- @LeslieHTayneEsq
#CreditChatWednesday | 3 p.m. ET
“Not paying attention to how fast it adds up. Thinking of using the credit card instead of
waiting and saving money.”
- Jeanne Kelly, @creditscoop
How can debt impact us? Financially? Emotionally?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“Debt can be overwhelming. It can keep us from reaching our financial goals as well.”
- @FrogskinU
#CreditChatWednesday | 3 p.m. ET
“Debt can be a big emotional burden. Stay calm and seek advice when you need it.”
- @JustOnePay
#CreditChatWednesday | 3 p.m. ET
“Debt impacts all aspects of our lives; it impacts us emotionally and can create stress that even affects our
health!”
- @KOFETIME
#CreditChatWednesday | 3 p.m. ET
“If you pay it timely, it can be to your benefit as far as credit goes.”
- Ashley Bales, @saveforgem
What holds many people back from getting out of debt?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“Existing habits and systems that we struggle to change can keep us in debt.”
- Bill, @FamZoo
#CreditChatWednesday | 3 p.m. ET
“Many people believe debt is part of life. It’s become so usual to buy now and pay later we don’t see debt as an
emergency.”
- Andie, @moneyinmy30s
#CreditChatWednesday | 3 p.m. ET
“People are held up from paying off debt by not having a plan. You need to know now how much debt and do monthly budget.”
- Paul Moyer, @SavingFreak
#CreditChatWednesday | 3 p.m. ET
“Social pressures can play a big role, which can lead to buying with money you don’t
have.”
- @KOFETIME
How do you choose what debt to pay off first? Smallest debt? Interest rate?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“The math says you should pay off the debt with the highest interest rate first because
it’s costing you the most.”
- @StacySmith0615
#CreditChatWednesday | 3 p.m. ET
“It can feel like a victory to see a debt completely paid, so maybe focus on the smallest one first.”
- @FedChoiceFCU
#CreditChatWednesday | 3 p.m. ET
“Psychologically, paying off the smallest debt first then the next smallest debt really
pushes people to keep going.”
- Paul Moyer, @SavingFreak
How much should you save (emergency fund) before tackling debt?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“Based on your situation start with 1) savings, or 2) paying off debt, or 3) take the
middle road.”
- @AirForceFCU
#CreditChatWednesday | 3 p.m. ET
“Experts believe you should have enough money in your emergency fund to cover at least 3-6 months’ worth of
living expenses.”
- @StacySmith0615
#CreditChatWednesday | 3 p.m. ET
“3-6 months of your expenses is the guideline. Once you have an emergency
fund you can focus on paying off debt faster.”
- @Purefy
How do you track your debt pay-off strategy?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“You can use apps or an excel spreadsheet and organize the amounts from smallest to
biggest or highest interest to lowest.”
- @care4yourfuture
#CreditChatWednesday | 3 p.m. ET
“Programs like Mint help you see everything in one place, or even a simple Excel sheet can keep you organized.”
- @LeslieHTayneEsq
#CreditChatWednesday | 3 p.m. ET
“Monitor your accounts online or with statements. Create a plan to pay off debt but
don’t be afraid to adjust as needed.”
- @Purefy
#CreditChatWednesday | 3 p.m. ET
“Find what works for you to track debt payoff - some people are more comfortable
with pen and paper and other like apps.”
- @kevincswanson
What are ways to stay motivated to keep paying down debt?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“Set mini-goals. The success of meeting a small goal can keep you moving forward to
the next goal.”
- @StacySmith0615
#CreditChatWednesday | 3 p.m. ET
“Find out how much extra money you’ll have a month when debt is gone. That’s a big
motivator for me!”
- Writer Leah Ingram, @suddenlyfrugal
#CreditChatWednesday | 3 p.m. ET
“Track your progress. Celebrate milestones. Get an accountability partner who gives you moral support.”
- @AirForceFCU
#CreditChatWednesday | 3 p.m. ET
“Reward yourself when you reach a debt payoff milestone - something small and
meaningful that gives a sense of accomplishment.”
- @kevincswanson
What do you think about debt consolidation?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“Debt consolidation is only useful if you have learned your lesson. Consolidating
debt and then taking out more does no good.”
- Paul Moyer, @SavingFreak
#CreditChatWednesday | 3 p.m. ET
“Depends on what you mean by ‘consolidation’. Consolidating into one loan at lower rate and all reported paid can be good.
‘Consolidation meaning ‘debt settlement’, will hurt credit and should be a last resort.”
- @Rod_Griffin
#CreditChatWednesday | 3 p.m. ET
“Consolidating can simplify payments but doesn’t save money. Refinancing is how to
save and often includes consolidation.”
- @Purefy
What resources of apps can help those budgeting or paying down debt?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“Check out @YNAB for budgeting! And of course @JustOnePay, so you never miss a
payment.”
- @JustOnePay
#CreditChatWednesday | 3 p.m. ET
“I like Mint as well! I think a piece of paper taped to your refrigerator or mirror is a good reminder everyday.”
- Ashley Bales @saveforgem
#CreditChatWednesday | 3 p.m. ET
“Mint has a free financial goals section (with your account) on their site to help
with paying off debt.”
- @kevincswanson
Any final suggestions for those looking to pay down debt?
#CreditChatWednesdays | 3 p.m. ET
#CreditChatWednesday | 3 p.m. ET
“There are numerous ways to get out of debt, figure out the plan and methods best
for you and seek out help from others.”
- @care4yourfuture
#CreditChatWednesday | 3 p.m. ET
“First step is to stop spending. Seems obvious but is still a common mistake.”
- @Rod_Griffin
#CreditChatWednesday | 3 p.m. ET
“The three steps to debt free success are: streamline your budget, make bigger
payments and roll in savings!”
- @debtcom
#CreditChatWednesday | 3 p.m. ET
“Focus on that end result of financial freedom and the result it will have on the next generation!”
- Ashley Bales @saveforgem
#CreditChatWednesday | 3 p.m. ET
“Paying off debt will give you more financial freedom in the future. It’s worth it.”
- @JustOnePay
#CreditChatWednesdays | 3 p.m. ET
Check out all the resources and tips shared:
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