Paying Down Debt By Hire Dynamics CATEGORY: Blog POSTED: November 9, 2021 If you have some debt you’d like to pay off, understand that you are NOT alone! As of September 2021, consumer debt in the U.S. topped out at $14.96 trillion. (That is NOT a typo.) That figure includes credit cards, student loans, home mortgages, car loans, and more. The average debt total among consumers is $92,727. Yet while debt has been normalized and you’re not alone in having it, it’s something that’s best eliminated. Because debt, unfortunately, can: Lower your credit score. This is particularly so if you have a lot of debt because having it drives your credit score lower. Which then can affect your ability to get low-interest rates on loans. And higher interest rates can impact your available cash flow. Which could see you need to use credit cards more to make up the difference. A bad credit score also can affect how easy it is for you to rent an apartment or house. The many benefits of no debt Living debt-free is freeing. You don’t need to fear a car will be repossessed. There’s no worry that you won’t be able to find a place to live. The money you were paying toward debt now can go to savings/investing. Perhaps best of all, living with no debt gives you options: you’re not tied to a job (or boss) you hate. If you have some savings, you conceivably could quit a job without having another to go to (NOT recommended, however….). But the point is: peace of mind grows when your debt shrinks. And you don’t have to be free of all debt to know that feeling. Even “retiring” 10 percent of debt feels great and helps your finances. Paying off 25 percent of it? Even better. Imagine paying off half of your debt! What would your life be like then? It can be done. Really. No matter how much money you make. Here’s how It’s called a “debt snowball,” and it works like this. First, stop putting ANYTHING on a credit card or taking out any more loans! Then… Take all of your debt (credit cards, car loans, medical debt, etc.) and lay them all out. Find the debt that has the smallest amount owed. Find a way to pay a bit extra each month on that loan. Even if it’s just $10, that’s something. Pay the usual amount you pay each month on all your other debts. Once that first (lowest) debt is paid off, go to your second-lowest debt and add all of what you were paying on the first debt to that loan’s monthly payment. Pay the usual amount you pay each month on all your other debts. Once that second (lowest) debt is paid off, go to your third-lowest debt and add what you’re paying on that second debt (the first debt amount plus the second debt’s amount). Continue paying the usual you pay each month on all your other debts. Repeat on all your loans until all debt is paid off. This could take several months or even years, depending on how much debt you have. But even if you find you need to stop after a few months, you’ve still lowered your debt burden. Once you’re able to start the process again, you’ll be in even better shape. (You’ll also know that you have the strength to have exercised this kind of – truly tough –discipline before and should find the snowball method easier to do this time.) Is this easy? Heck no!! Many people with a lot of debt have low incomes and could find it hard to “spare” even $10/month extra on that first debt. Yet many people have used this process successfully: take a look at the articles of people who have done so at Dave Ramsey’s site. (He’s a huge proponent of the debt snowball.) Many people find the money or extra debt payments by taking on a second or temporary job. (If you’re interested in doing so, check out Hire Dynamics opportunities and apply.) Good luck with your debt drive-down efforts and remember to give yourself a HUGE shout-out for doing so! Looking for a new job with career potential? Consider searching for warehouse jobs near me!
