Debt Reduction

Debt Freedom Date Calculator

Are you ready to pay off some serious debt in 2019? To say “goodbye” to the car payment, Sallie Mae and credit cards? If you said yes, the Debt Freedom Date Calculator found HERE on our website can really help you. This tool combined with the Debt Snowball Technique is how I became debt free and you can too!

Step One: Identify All Debts Owed (Lender, Amount Owed, Monthly Payment)

Make sure you list out all of the debts that you owe and how much each one is. You can check your credit report just to double check that you have no outstanding debts that you may have forgotten about.

Step Two: Sort Debts By Amount Owed (Smallest to Largest)

List your debts out by sorting the debts from smallest to largest by the amount owed. Make sure you have sorted by the amount owed and not the payment amount.

Step Three: Pay Minimum Payments on All Debts, Except The Smallest Debt

Make the minimum payment on all of the debts except the smallest one. It can be very tempting to start to attack your credit card bills or car payment but if that is not the smallest amount you owe, make minimum payments for now.

Step Four: Apply Any Extra Money to Smallest Debt

If you have leftover money in your budget, apply that to the smallest debt that you owe. The quicker you can see a victory, the more effective this technique will be!

Step Five: When Smallest Debt is Eliminated, Add Its Monthly Payment to Next Smallest Debt

Once you have paid off the smallest debt, take the payment you were allocating towards it, and apply it to your next smallest debt. That way, as you pay off more and more debts, you’re creating a debt snowball!

If you would like more information on this topic, check out this quick YouTube video HERE where I explain the technique and give visual examples.

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

 

MONDAY MONEY TIP PODCAST: 8 Ways to Speed Up Debt Elimination

This week on the Monday Money Tip Podcast, we’ll be sharing eight ways that you can speed up your debt elimination process this year. If you made a New Year’s resolution to pay off debt, this information can help you make some significant headway! I’ll also check in on your other resolutions that you made at the beginning of the month and share how your daily habits can help you accomplish these goals. We also have a success story from one of our Savings Challenge participants who saved $6,000 in their annual budget!

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us!

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:

iTunes
Stitcher
Spotify
Website

Show Notes

About the Episode:

  • I share how you can carry your New Year’s resolutions throughout the year by focusing on your daily habits.
  • Megan and I discuss eight specific things you can do to gain significant traction in your debt payoff journey.
  • Hear a success story from participants of our last Savings Challenge who saved $6,000 in their annual budget.

Resources:
0% Balance Transfer Credit Cards
Annual Plan Tools
Budget Challenge
Savings Challenge
Episode 26
Episode 27
Salary.com

Quote of the Day: “I’ve never seen anyone achieve financial freedom by obtaining lots of credit card points and airline miles.” – Joe Sangl

 

Debt Payoff Spectaculars

Did you make a resolution this year to finally off that debt that has been hanging over your head? Once that debt is gone, that payment will be freed up for you to start making progress towards your plans, hopes and dreams. If you need a visual tool that can help you gain traction in your debt freedom journey, you should check out our Debt Payoff Spectaculars found HERE on our website.

These spectaculars are incredibly easy to use and can give you a visual representation of your debt being paid off. All you have to do is take the amount of debt you owe, and divide that by the number of squares on the payoff spectacular. This will give you the amount of debt that each square represents. Each time you make a payment in that amount, color off a square!

While it may sound simple, there is something cathartic about visually marking that debt out of your life. If you’re paying off a truck, you can physically see the amount of that truck that you now own and you will find yourself wanting to color more and more squares. You might even go crazy and adjust your budget to cut your spending and allocate more towards debt!

Check out our Debt Payoff Spectaculars HERE!

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.

MONDAY MONEY TIP PODCAST: How to Have a Debt Free Christmas

Are you ready to have a debt free Christmas this year? We are already at the end of November and Christmas is less than a month away. During this episode, Joe will share exactly what you can do in order to complete your Christmas shopping without incurring any additional debt. Joe has an update on the U.S. National Debt and we have a success story about a couple who created their first ever budget without an argument.  

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take a next step, and that you’ve had FUN with us!

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

NOW AVAILABLE TO DOWNLOAD:

iTunes
Stitcher
Spotify
Website

Email info@iwbnin.com to ask questions or share success stories.

Show Notes:

About the Episode:

  • Joe shares alarming information about the U.S. National Debt.
  • Megan shares a success story about a couple who created their first ever budget without an argument.
  • Joe explains what you can do in order to have a debt-free Christmas this year.

Resources:
IWBNIN Next Steps
IWBNIN Upcoming Events
Christmas Mini-Budget

Quote of the Day: “Without a PLAN and a PROCESS, you won’t make PROGRESS.” – Pastor Ken Murphy, Cypress Church

 

Pulling Money Out Of Retirement Accounts Early

As people take off on their debt freedom journey, so many times they are tempted to withdraw money from their retirement accounts in an attempt to speed up their debt elimination process. We get questions all the time from people who want to know whether or not we think this is a good idea.

I do not think it is ever a good idea to take money out of a retirement account in an effort to pay off debt. Many people feel like retirement is so far away that they have plenty of time to begin saving. And while you may have plenty of time to start saving, you will never regret starting as early as possible. The key is to start investing early and invest consistently. In all likelihood, no matter when you begin saving for retirement, you will wish you had started sooner.  

When you get started on your debt freedom journey, it can seem like the end is so far away. But I would encourage you to stay the course. Get a budget using one of our FREE tools, calculate your debt freedom date using our FREE calculator and slowly but surely, you will see those debts drop off. And once they are all gone, not only will you be debt free but you will also still have your money working for you in your retirement accounts.

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Want more tips like this one?  Subscribe to the Monday Money Tip Podcast HERE.