It’s 2015! We are a month into the new year and it’s time to evaluate how the year is going so far! We’ve talked about financial goals for 2015 and now it’s time to make a commitment to get rid of your debt this year!
Make 2015 the year you decide to take control of your finances and get rid of what you owe. Make your paycheck yours and dedicating the year to paying down debt.
Here are two great reasons to pay down your debt this year and two tips to make this dream a reality!
Why you should pay your debt down sooner rather than later:
1) You will pay less interest.
No one likes to pay more than they should for an item, and if you are anything like me, you hunt for the best deal. Paying interest on your credit cards infinitely increases the price you will be paying for that item, meaning all those deals you searched for just went to waste.
2) Reduce your stress.
Once you pay down your debt, you don’t owe anyone anything. Your money is yours and on payday you can do whatever you like with it! Gone are the days where a portion of your paycheck actually belongs to someone else!
Imagine what you can do with all that extra cash you won’t have to put towards debt repayment anymore. You can start investing, top off your emergency fund, or go on the vacation of your dreams! What would you do if you didn’t have any debt?
How can you pay down your debt faster?
1) Make your payments automatic.
There is nothing easier than setting up an automatic debt payment the for the same day you get paid. That way, by the time you log into your bank account, the money is already gone and you can’t spend it. It makes debt repayment painless, quick, and easy.
2. Snowball your debt.
If you don’t buy a coffee and you have an extra $5 throw it at your debt. Any extra money you get from gifts or side hustles should be immediately thrown at your debt. You will be surprised how quickly these little amounts start to add up and decrease the balance you owe! Consider doubling or tripling your payments, at the very least.
So make this year the year you decide and commit to paying down your debt. Build a plan and attack it, the year will go by much faster than you think!
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About the Author
Janine is a tax specialist and personal finance blogger for Calgary, AB. She is actively pursuing her CPA designation while fighting her way to financial freedom. She is the Vice-President External for the not-for-profit Her Success and enjoys sharing her financial knowledge with her peers. When she is not at work or studying Janine enjoys traveling, baking, yoga and ending off the day with a glass of wine.
Website: mypenniesmythoughts.com