Percentage Thinking: Your Route to Paying Off Debt Faster

pay off debt faster with percentage thinking

Being in debt sucks. Being in debt really sucks when you look around and see all of the inspirational stories about people who have paid off $100,000+ in less than five years. If you’re starting to feel discouraged because you don’t have a high-paying job, or if you feel like you’re drowning in debt and don’t know how to get out, this post about “how to pay debt off faster with percentage thinking” is for you.

How to Pay Debt Off Faster With Percentage Thinking

This post was written by our talented staff writer, Kimberly Studdard.

The truth is, you don’t need a 6-figure job or the ability to move in with your parents in order to pay off debt. In fact, I was able to pay off $20,000 in three years, even though I was…

renting in a higher cost area, had a child, and was making way less than $50,000 a year.

How did my family do it? We used percentage thinking. And here’s how you can pay debt off faster with percentage thinking too!

What is Percentage Thinking?

Percentage thinking is when you try to improve your . . . → Read More: Percentage Thinking: Your Route to Paying Off Debt Faster

From Welfare to Well-Off: How Single Moms Can Finally Get Ahead

how single moms can get ahead

We’ve all probably heard of the common stereotypes about single moms. One of the most common stereotypes involves money – more specifically how single moms don’t have much of it. This is something I definitely did NOT want to become my reality. Stereotypes are only true if you allow them to be. For me, it was time to figure out how single moms can get ahead (instead of being left in the dust socially and financially)!

How Single Moms Can Get Ahead (Finally)

This is a guest post written by Choncé, a freelance writer who’s obsessed with frugality and helping others increase their savings rate, pay down debt, and work toward financial stability. Check her out over at My Debt Epiphany.

In 2013, I found myself living as a single mom and utilizing government assistance to get by. While my story starts off rough, I went from low-income and struggling to financially stable and earning nearly 6-figures in less than 5 years.

I want to use my story to demonstrate to you how single moms can get ahead in our world today.

Define Your Breaking Point

We all have a . . . → Read More: From Welfare to Well-Off: How Single Moms Can Finally Get Ahead

6 Financial Goals to Strive For This Year

manage your home finances

Finances are often a touchy subject. After all, nobody wants to talk about them, and most people get anxious thinking about their financial future. Want to get rid of this anxiety? It’s time to learn about the important financial goals to strive for this year. Instead of worry, you’ll be carefree and happy, with your finances being the last thing on your mind.

6 Financial Goals to Strive For This Year

Did you know that 73% of Americans die with debt? While getting out of debt is a big goal, it shouldn’t be the only financial goal you should set for yourself. Instead, you want to ensure you are making smart choices today while also preparing for the financial future. So if you’re looking to get a better grasp on your financial situation, here are 6 financial goals to strive for this year.

1) Have an emergency fund

Emergencies happen, and no matter how organized you are, you cannot always prepare for the worst. However, you can have an emergency fund set aside for certain things when they go wrong, such as car repairs or being temporarily laid off from . . . → Read More: 6 Financial Goals to Strive For This Year

Pay Off the Mortgage Fast (Like Us) With This Totally FREE Tool!!

pay off the mortgage fast - free tool

You’re out of consumer debt, you’ve got your emergency fund, you’re investing for your retirement, and now you’re finally ready to tackle the behemoth – the mother of all debts…the house! Congrats!! Just think about the future you’ll have here – use the tool below to pay off the mortgage fast, bump up your retirement savings yet again, and then still have so much extra money that you won’t even know what to do with it all!

These are good problems to have, so let’s get you there and pay off the mortgage fast!

How to Pay Off the Mortgage Fast (Like Us!)

We were completely out of debt, owned two rentals that we paid cash for, and our retirement funds were soaring…but somehow, we just weren’t content. Life wasn’t what we expected it to be.

Maybe it was the fact that our house was originally mine and my ex’s, Or that our kitchen window was only about 15 feet from our neighbor’s living room, Or maybe it had something to do with the busy road that hosted a multitude of police cars, fire trucks, ambulances, and even the occasional . . . → Read More: Pay Off the Mortgage Fast (Like Us) With This Totally FREE Tool!!

Could You Get Out of Debt This Year?? (w/ Free Debt Snowball Calculator)

could you get out of debt this year - raining money - debt snowball

“Hi Derek! I make $60,000 a year and have $25,000 in student loans. Do you think I could roll up my sleeves and get out of debt this year?”

I get this question a lot. People know they have a decent income, they know they have debt, but they just can’t figure out how long it’s going to take them to get rid of it all. So naturally….they do absolutely nothing…

Could You Get Out of Debt This Year?

This drives me absolutely nuts!! C-mon, people! You’ve got a debt hanging out there that’s HUGE and is costing you thousands of dollars a year! Stop ignoring it! That ostrich “head-in-the-sand” approach that you’ve grown fond of…it isn’t working! That lion can still see you and you WILL get eaten if you don’t start moving and figuring out this debt thing!

So what’s the answer? What’s going to spring you into action?

1) Know Where You Stand. Total Up Your Debt

Want to know if you can get out of debt this year? First, you’ve got to know where you stand. How much debt do you really have?

Stop reading for . . . → Read More: Could You Get Out of Debt This Year?? (w/ Free Debt Snowball Calculator)

73% of Americans Die With Debt – How NOT to Be One of Them

die with debt no thanks

Can you believe that 73% of Americans die with debt? And it’s not just a $200 credit card balance either. On average, Americans pass away with $62,000 worth of debt. That’s just insanity!

My advice? Learn the debt traps and avoid them, then build wealth and never look back. You won’t ever regret it and you know what? Neither will your kids!

Die With Debt? No Thanks. It’s Time to Understand the Debt Trap

Of the 73% of Americans that die with debt…

68% had credit card balances,37% still had a mortgage,25% had car loans,12% had personal loans, and6% had student loans

Sheesh. That’s a wide range of debt!

Some may have only had one category of debt above, but there were others that may have had every form. On average, a sizable amount of people had credit card debt, mortgage debt, and car debt!

Why is this? How do people fall prey to so many different forms of debt?

1) We Have a Credit Card That’s “Only For Emergencies”

“I’ll get a credit card…just in case something pops up that I can’t afford. It’ll be good to . . . → Read More: 73% of Americans Die With Debt – How NOT to Be One of Them

When Does Debt Consolidation Make Sense to Pay Off Credit Cards?

which debt to pay off first

Many Americans are no stranger to big credit card bills. When you are neck-deep in credit card debt, it can seem like there is no end. Sometimes it may feel like any option can be justified temporarily as your saving grace, but when it comes to credit card debt consolidation, it pays to take a close look at your circumstances before committing to anything. More importantly, you’ll want to answer the question, “When does debt consolidation make sense to pay off credit cards?”

Before we get too ahead of ourselves, it’s important to fully understand what you would be getting yourself into if you signed up with a company who can help you roll your debts into one.

What exactly would the plan look like? How long would it take? How much will the monthly payments be?

These questions and others should be carefully addressed before signing on the proverbial dotted line.

When Does Debt Consolidation Make Sense to Pay Off Credit Cards?

It’s time to answer all the base-level questions first – then we can appropriately decide whether debt consolidation is the right way . . . → Read More: When Does Debt Consolidation Make Sense to Pay Off Credit Cards?

The Real Reason You Should Pay Off Your House (It’s Not Interest Rates)

buying a home

Is it wise to pay off your house? Most people would say, “no”… While I have always told you yes. But what are the reasons behind these answers? Does it actually make financial sense to pay the full term of a 15-year mortgage rather than trying to pay the debt off as quickly as possible?

The Real Reason You Should Pay Off Your House

Even after digging into all the numbers, I want to tell you up front that I’m still a firm believer that you should pay off your house early. It’s not as much of a slam-dunk as some hardcore traditionalists lead you to believe, but I still firmly believe it’s the best path to wealth.

Why am I bringing you this message like I’m fighting an up-hill battle?

It’s because I am.

The Interest Savings…It’s Not as Huge as it Sounds

You probably already know the main reason why most personal finance blogs tell you to pay off your house — because of the hundreds of thousands of dollars you’d otherwise be paying the bank in interest. Here’s how the scare tactic usually goes…

Borrow $240,000 to . . . → Read More: The Real Reason You Should Pay Off Your House (It’s Not Interest Rates)

3 Ways to Calculate Which Debts to Pay Off First

get out of debt this year - debt snowball calculator

Paying off debts can be a daunting task. Whether you find yourself knee-deep in credit card debt, struggling to make ends meet every month, or desperately wish that you could pay off those student loans, there is hope. Once you’re ready to tackle them though, how do you know which debts to pay off first?

3 Ways to Calculate Which Debts to Pay Off First

There are a few methods to determine which debts to pay off first, based on what your goals are and how immediately you need results. Understanding these methods will help you better tackle any debt.

1) In Order of Interest Rate

One method for paying off debts is to rank your debts in order of the interest rate. It makes sense to pay off the debts that are accruing the most interest first since those are the ones that can end up costing you the most in the long run. However, some people find this demoralizing. The highest-interest debt is often your largest one, too, which means that it can take months or a year to pay it off, making you feel like you’re . . . → Read More: 3 Ways to Calculate Which Debts to Pay Off First

5 Ways to Save and Get Out of Debt

ways to save money and get out of debt

Debt can make it impossible to live a normal and happy life. When you’re constantly worried about making payments and stressing about how you’re going to get out of debt, it’s hard to stay positive. Sadly, we live in a culture of credit, and most people are way too willing to make purchases that they can’t afford to pay off quickly. This leads to ever-increasing amounts of debt that can quickly become a nightmare situation. So why not think of ways to save and get out of debt?!

5 Ways to Save and Get Out of Debt

By understanding how to start saving money and committing yourself to paying off your debt, you can achieve financially freedom and stability. While it won’t happen overnight, if you stick with the plan, you can see a drastic reduction in your debt.

Here are 5 great ways to save and get out of debt.

1. Create a Budget

It’s very easy to get into debt (and stay in it!) when you don’t have a budget to stick to. One of the first ways to save and get out of debt is to figure . . . → Read More: 5 Ways to Save and Get Out of Debt