SERIES: Restructuring Debt – Part Six

Welcome to the latest series at – Restructuring Debt

I am excited to embark on this series of posts because interest paid toward debt is one of the largest obstacles to gaining traction for one's own Debt Freedom March.

Of course, one way to eliminate the interest is to sell some stuff and become debt-free.  But I recognize that for some people, they have debt that they are going to have to focus on and just pay it off.  If this describes you, then I trust that this series helps you gain speed in your Debt Freedom March! 

Part One – Know What You Are Paying

Part Two – Lower The Interest Rates!

Part Three – Lower The Interest Rates! – Continued

Part Four – Lower The Interest Rates! – Continued

Part Five – Lower The Interest Rates! – Continued 

There are many approaches one can take to lower their interest rates.  In Part Two, I covered the "negotiation" avenue.  In Part Three, we covered surfing the balances to zero-percent credit cards.  In Part Four, it was the debt consolidation option.  In Part Five, it was the credit score option.  In Part Six, I will be sharing my most favorite way to restructure debt.


I used to be broke.  I used to have $4.13 in my bank account after paying all of my bills, and I was pumped because it was a positive balance.  Yet, I was sending hundreds of dollars every single month to banks for debt.   I finally experienced my I Have Had Enough Moment (IHHE Moment) and attacked my debt.

I know that the interest is annoying.  I know that trying to get the lenders to lower their interest rates is frustrating and humiliating.  Besides that – much of that is out of our control.  But controlling how we spend our money from now on IS in our control.  Not signing up for more debt IS in our control.  Going to work for sixteen hours a day to eliminate our debt superfast IS in our control.  Selling our car, boat, truck, collectibles, and other niceties IS in our control.  No, it might not be fun, but paying hundreds and thousands of dollars a year in interest is MISERABLE and robs us of the ability to go do EXACTLY what we have been put on this earth to do!

So I end this series with two questions and their answers.

Q:  How much interest do you have to pay when you have zero debt?


Q:  How much interest is paid to you when you have money in the bank or invested?

A:  Anywhere from 3% to 12% or more!  Paid TO you!  I decided long ago to choose to have interest paid to me instead of paying it to someone else.

I trust that this series has helped you.  I love hearing the stories.  If you would be willing to share your story or would like to sign up for a free financial counseling session with one of our fifteen trained volunteer counselors, fill out the contact form HERE

1 Comment

  1. Mark Nelson on August 22, 2008 at 7:01 am

    It is key in any debt reduction plan to also be building your assets at the same time. Many people work so hard on getting out of debt that once they get there they just go back in. If they get in the habit of putting money away at the same time they are reducing debt they will continue building assets when their debts are gone.

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