Debt can be a difficult financial burden to deal with.
It can create stress, frustration, and a wave of emotions which make it hard to go on with your day-to-day life.
Not to mention, significant debt can hinder your ability to contribute to your savings, which will put you in a significant financial hole and drastically hurt your future.
Getting out of debt isn’t easy, but it is crucial for your financial health and overall well-being. Fortunately, there are steps you can take to start paying off your debt so that you can experience peace of mind and a happier, more secure future.
Here’s the first tip: pay off your debt early before it becomes a real problem. The sooner you can pay off your debt, the better off you will be. Keep reading to learn more and to find out how Tactical Wealth can help contribute to your financial well-being with our high return investment, the Fixed Income Fund, once your debt is fully paid off.
More Than Minimum
When it comes to credit cards, you can avoid debt from accumulating in a hurry by paying off more than the minimum payment each month. This will help you stay ahead of the curve and pay off your debt much faster.
Another pro tip when it comes to credit cards: don’t use them as a crutch. You should only use your credit cards in case of an emergency or when you have a plan in place to pay off the balance efficiently.
Round Up Your Payments
If you have a hefty credit card balance or awkward monthly payment on your student loans, this is a simple trick you can utilize to help get caught up quickly.
Round up your monthly payment to the next highest clean denomination. For example, if your payment is something like $167.89, simply round it up to a clean $200. This may not seem significant, but it will make a difference when you want to pay off debt sooner.
Most people attack their debt by just paying once a month. However, you can cut the amount of time that you are in debt by as much as half if you decide to make bi-weekly payments instead. Not only will this help you take a chunk out of your balance each month, but it will also prevent interest from accumulating as much because you’ll be paying more each period.
Go After High Interest
If you have multiple credit cards or loans with varying interest rates, it would be wise to identify those with the highest rates and work on eliminating those first and foremost. While making extra payments is one option, it could also be worthwhile to consolidate or refinance your high interest loans, or even explore a balance transfer card with a lower interest rate. This will help you avoid crazy interest from accumulating, thus creating more debt.
Make Extra Payments
Maybe you’re not financially stable enough to commit to paying on a regular bi-weekly basis. That’s OK. You can still make extra one-time payments here and there, which will help eat away at your balance whenever you have extra cash. Think about this option when you get your tax returns, a bonus at work, or get extra income from a side job.
Another simple method that can help you pay off debt sooner is by simply building an efficient budget. If you’ve always been the type to fly by the seat of your pants, now might be the time to think about changing your ways. Organize your monthly costs versus the amount of income you’ll be pulling in, and use whatever is left to divide up between savings, fun, and most importantly extra payments on your credit cards or loans.
High Return Investments
So where do high return investments fit into all of this? Well, once you have taken these important steps toward eliminating debt quickly, you can begin putting your money to an even better use. Low risk, high return investments are great vehicles for saving and planning for retirement and many other instances in life.
Contact the strategic investors at Tactical Wealth to learn about the Fixed Income Fund when the time is right for you. You won’t regret it.