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Increase monthly debt payments to expedite payoff from "summary" of Debt Free for Life by David Bach
To truly accelerate your journey to becoming debt-free, one of the most effective strategies you can implement is increasing your monthly debt payments. By committing to paying more than the minimum required each month, you can significantly reduce the amount of time it will take for you to eliminate your debts entirely. When you only make the minimum payments on your debts, you end up primarily covering the interest charges rather than making a dent in the principal balance. This means that you could be stuck in debt for years, or even decades, due to the compounding effect of interest. However, by increasing your monthly payments, you can start chipping away at the principal balance, which will ultimately reduce the total amount you owe. It's important to prioritize which debts to focus on first when increasing your payments. One common approach is to target high-interest debts such as credit card balances, as they tend to accrue interest at a much faster rate than other types of debt. By paying off these high-interest debts sooner, you can save yourself a significant amount of money in interest charges over the long run. Another key benefit of increasing your monthly debt payments is the psychological boost it can provide. Seeing your debt balances decrease more rapidly can be incredibly motivating and can help you stay on track with your debt repayment plan. Additionally, the sooner you can free yourself from debt, the sooner you can redirect those funds towards building wealth and achieving your financial goals.- Increasing your monthly debt payments is a powerful strategy for expediting the payoff of your debts and achieving financial freedom. By prioritizing which debts to tackle first and committing to paying more than the minimum required, you can take control of your finances and set yourself on the path to a debt-free life.
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