Four Ways To Erase Debt And Grow Your Wealth

Debt can feel like a never-ending cycle when it starts to get out of control. Even if you always make your payments on time and try not to use too much credit (on loans or cards), you could find yourself paying down debt for years and years. This is often because lending institutions extend credit cards and loans to low or middle-income individuals with extremely high interest rates. As a result, people with fewer resources have to pay even more in interest just to get rid of their debt.

Fortunately, there are ways to be rid of debt and even grow your wealth and assets at the same time. It’s all about sticking to a consistent strategy and managing your money in a way that prioritizes the most important payments and accounts. So, in today’s post, we are going to look at 4 ways to erase debt and grow your wealth!

Make More Than The Minimum Payment

The vast majority of people make the minimum payments on loans and credit cards because it allows them to keep more money in their pockets. However, only making the minimum payment can greatly increase the lifecycle of your debt and, more importantly, increase the amount you pay in interest. While some types of loans have a set amount of interest that does not change, some can be paid off early to help save you money. Credit cards work this way. So, make sure that you’re paying at least 10% more than the minimum payment to get rid of that debt as quickly as possible!

Set Repeated, Automated Payment Schedules

Sometimes, it can feel overwhelming to make lump sum debt payments every month. For this reason, we recommend setting up small, automated payments on a daily or weekly basis to help ensure that you are always paying down little bits of your debt. This way, when your monthly payment comes along, it doesn’t feel so daunting. Moreover, if your credit card or loan compounds interest daily (as most do), then you are actually helping to save yourself money by making daily or weekly payments. If you want to learn even more about the benefits of automation, particularly if you are a business owner, be sure to contact the experts at Amitech Solutions.

Avoid Using Credit Cards Unless Absolutely Necessary

Credit cards are so tempting because they often feel like “free money.” You simply swipe your card to pay for something and worry about the rest later. Unfortunately, credit cards definitely do not provide free money — quite the opposite. Instead of defaulting to your credit card whenever you need to make a purchase, only use your credit cards if and when it is absolutely necessary (like an emergency). Otherwise, leave them in your wallet!

Prioritize Debt Erasure, But Continue To Save

Debt erasure should always be one of your top priorities because the interest rates on credit cards and loans are often far higher than the rate of return on savings or investments accounts. However, this doesn’t mean that you shouldn’t be saving. Even if you can only set aside a few dollars per week, it can ensure that you have a nest egg that’s already been growing once you’re debt has been erased and you’re ready to focus on growing your wealth!

Did you find our guide on 4 ways to erase debt and grow your wealth useful and insightful? If so, be sure to check out even more great content on THE FIRE WIRE Blog today!

Published by Larry Fire

I write an eclectic pop culture blog called THE FIRE WIRE that features articles about books, comics, music, movies, television, gadgets, posters, toys & more!

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