How to Get Out of Debt in One Year
How to get out of debt in one year sound to good to be true, but it is totally achievable if you know the proper steps on how to do it.
What I am going to go through is steps on not only how to do it but how to do it and save thousands on interest payments.
How is that possible? First off, lets look at a conventional way of paying off your bills, the way the bank or credit card companies want you to.
for this example I will use three bills to pay off: a Visa, a MasterCard and a personal loan.
Now to do this you need to come up with a little extra money at first, for this example we will use $300 a month.
Now I know what your saying,"where do I come up with an extra 300 if I can hardly make the payments now?" You can use any extra amount you want but for this example to understand how it works, we will use that amount.
People who have used this method before did not have the extra money to begin with so they got an extra income (part time job) to get the money.
Now, mind you they only had it for a short time until they got it paid off, which you will see here how incredibly fast it happens.
So lets begin, so we have three outstanding debts: Visa, MasterCard and a personal loan.
lets say the visa has a balance of $600, the MasterCard of $900 and the loan at $4,000.
Your terms are 64 months, 24 months and 19 months respectively.
Also your minimum monthly payments and interest are as follows: $15 @19%, $45 @ 18% and $240 @ 10%.
So you have a total balance of $5,500.
00 over a course of 64 months.
What we are going to do fist is only focus on ONE bill at a time.
But the secret is to use the extra $300 dollars also.
Nothing new there,you say.
Well, just wait and see the REAL secret.
So to begin we will pay the Visa first.
So what we do here is take the extra $300 and put it on the visa every month.
Now we have paid off that visa in just 2 months and saved $344 in interest.
Now the second bill is the master card, but here is the secret and the incredible power to this.
We also take the $300 that we used to pay the Visa off and now use it to pay the Master card and ALSO use the Original Visa payment.
So instead of just adding on an extra $300 to the MasterCard, we are also adding on the original Visa payment.
See that? We did not use any extra money out of our pocket, but we just increased the payment.
So know that MasterCard payment is as follows: The original payment was $45 a month and we just added on an extra $315 to that payment for a total of $360 a month.
Remember that the balance was $900 over 24 months.
Now it gets paid off in only 3 MONTHS!!! And you save $153 in interest.
Now we go to the personal loan.
So what do you think we are going to do? That's right! We are going to take the original $300 extra plus the original Visa payment of $15 AND the original Master card payment of $45 and add it to the load monthly payment of $240 for a total of $600.
How long do you think it will take to pay off? That's right! 7 MONTHS!!! and you saved $192 in interest.
So the original payment term was 64 months to pay it all off.
Now we have paid it off in 12 months!!! You can do this as many times as you want with as many bills as you have, just keep on rolling it over and over.
This way I found is truly the ONLY way to get out of debt fast.
What I am going to go through is steps on not only how to do it but how to do it and save thousands on interest payments.
How is that possible? First off, lets look at a conventional way of paying off your bills, the way the bank or credit card companies want you to.
for this example I will use three bills to pay off: a Visa, a MasterCard and a personal loan.
Now to do this you need to come up with a little extra money at first, for this example we will use $300 a month.
Now I know what your saying,"where do I come up with an extra 300 if I can hardly make the payments now?" You can use any extra amount you want but for this example to understand how it works, we will use that amount.
People who have used this method before did not have the extra money to begin with so they got an extra income (part time job) to get the money.
Now, mind you they only had it for a short time until they got it paid off, which you will see here how incredibly fast it happens.
So lets begin, so we have three outstanding debts: Visa, MasterCard and a personal loan.
lets say the visa has a balance of $600, the MasterCard of $900 and the loan at $4,000.
Your terms are 64 months, 24 months and 19 months respectively.
Also your minimum monthly payments and interest are as follows: $15 @19%, $45 @ 18% and $240 @ 10%.
So you have a total balance of $5,500.
00 over a course of 64 months.
What we are going to do fist is only focus on ONE bill at a time.
But the secret is to use the extra $300 dollars also.
Nothing new there,you say.
Well, just wait and see the REAL secret.
So to begin we will pay the Visa first.
So what we do here is take the extra $300 and put it on the visa every month.
Now we have paid off that visa in just 2 months and saved $344 in interest.
Now the second bill is the master card, but here is the secret and the incredible power to this.
We also take the $300 that we used to pay the Visa off and now use it to pay the Master card and ALSO use the Original Visa payment.
So instead of just adding on an extra $300 to the MasterCard, we are also adding on the original Visa payment.
See that? We did not use any extra money out of our pocket, but we just increased the payment.
So know that MasterCard payment is as follows: The original payment was $45 a month and we just added on an extra $315 to that payment for a total of $360 a month.
Remember that the balance was $900 over 24 months.
Now it gets paid off in only 3 MONTHS!!! And you save $153 in interest.
Now we go to the personal loan.
So what do you think we are going to do? That's right! We are going to take the original $300 extra plus the original Visa payment of $15 AND the original Master card payment of $45 and add it to the load monthly payment of $240 for a total of $600.
How long do you think it will take to pay off? That's right! 7 MONTHS!!! and you saved $192 in interest.
So the original payment term was 64 months to pay it all off.
Now we have paid it off in 12 months!!! You can do this as many times as you want with as many bills as you have, just keep on rolling it over and over.
This way I found is truly the ONLY way to get out of debt fast.
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