Name: How to Save Money this Year by Paying Off Debt
Brand: moneytreestudio.com
SKU: moneytreestudio-com-4
Availability: OnlineOnly

critic

How to Save Money this Year by Paying Off Debt

preview

The average American had a whopping $96,371 in debt in 2021. This is unfortunate because debt keeps you from reaching your long-term financial goals. Also, the stress of debt can be crushing, leading to serious health troubles, marriage failures, and negative credit score outcomes (30% of your credit score is based on debt). To make matters worse, with recent inflation eroding wage gains, the number of Americans living paycheck to paycheck is more than half, at 63%. If you are one of these Americans in financial “dire straits,” consider your first plan of attack paying off debt. Although it doesn’t sound sexy, it’s a surefire way to set yourself up for financial success this year.If you only pay the minimum on your loan, you are letting the lender win! To pay down your debt more quickly and save on interest, pay more than the minimum every month. Of course, before taking this step, make sure there are no prepayment penalties in the terms and conditions of the agreement. One way to do this is to remind yourself to pay down your debt more than once a month through things like Google Calendar reminders.If you have more than one loan in your name, it can be advantageous for you to pay off the most expensive loan, with the highest interest rate, first. This is sometimes known as the avalanche method of paying down debt.Popularized by David Ramsey, the snowball method involves starting by paying off your smallest balance first and then working your way up to the largest balance. This method can help you build momentum and confidence.You can refinance your loan in several ways, including lowering the interest rate and shortening the length of the loan. If you can lower the interest rate of your loan, you will pay less overall in totality. If you shorten the length of your loan, in the near term, it will increase your monthly payments, but in the long term it will decrease the total amount of the loan.Debt consolidation can help you lower your overall monthly expenses and increase your cash flow, reduce stress with fewer bills to juggle, reach savings goals more quickly with any extra cash you save, and lower your credit utilization ratio, which may help improve your credit score. Take inventory of your total debts and research your options online.Overall, paying down your debt faster is a win-win. Some of the benefits of paying off debt include increasing your financial security, reducing stress in your life, reducing the number of bills you pay, improving your credit score, teaching your children good money habits, being able to own your own assets, being able to increase your future earnings, and getting from under your lenders’ control. Good luck and happy saving!The Money Tree Studio is an online magazine exploring the world of finance. From shopping and technology to global economic trends, we’re here to make finance an accessible topic for everyone. Hope you find our page interesting and inspiring!

The average American had a whopping $96,371 in debt in 2021. This is unfortunate because debt keeps you from reaching your long-term financial goals. Also, the stress of debt can be crushing, leading to serious health troubles, marriage failures, and negative credit score outcomes (30% of your credit score is based on debt). To make matters worse, with recent inflation eroding wage gains, the number of Americans living paycheck to paycheck is more than half, at 63%. If you are one of these Americans in financial “dire straits,” consider your first plan of attack paying off debt. Although it...

public

Jesse Olson

moneytreestudio.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

How to Save Money this Year by Paying Off Debt

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS