Pay Off Debt: How to Pay Down Debt Faster

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  • 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.

    ex.pn/paydebt

    http://www.experian.com/blogs/news/about/debt-pay-off/

  • 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?

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  • #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. Its become so usual to buy now and pay later we dont 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 dont

    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

    its 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

    dont 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 youll have a month when debt is gone. Thats 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 doesnt 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. Its worth it.

    - @JustOnePay

  • #CreditChatWednesdays | 3 p.m. ET

    Check out all the resources and tips shared:

    ex.pn/paydebt

    http://www.experian.com/blogs/news/about/debt-pay-off/

  • #CreditChatWednesdays | 3 p.m. ET

    Join Us Every Wednesday at 3 p.m. ET.

    experian.com/creditchat

    http://www.experian.com/blogs/news/about/creditchat/