Hey there, friends!
It’s Nhan Nguyen, and today we’re diving deep into managing your personal finances.
More specifically, I’m about to give you my 3 most valuable tips on tackling personal debt.
Are you ready to set yourself up for financial success? Let’s go!
The Importance of Addressing Personal Debt
Dealing with personal debt is something nobody likes to discuss.
Yet it’s a crucial aspect of our financial lives, especially if you want to invest in property.
From a purely financial perspective, banks and other businesses make loads of money from your personal debt.
Think credit cards, personal loans, and buy now pay later plans like Zip Pay and G money.…
From an investing perspective, the more debt you have, the less you can borrow. Which means fewer opportunities for you.
So If you’re struggling with personal debt or looking for ways to get rid of it, listen up.
My Personal Debt Story
For example, I once bought a Mercedes Benz AND a Porsche on debt.
At first, it felt great.
But as I improved my finances, I realized the burden that debt can be.
Three Ways to Eliminate Personal Debt
Let us now dive into my top three ways for eliminating personal debt.
1. Make “The Call”!
This is the first (and easiest) step for tackling your personal debt.
And it’s really simple.
Pick up the phone. Call your lender. And Let them know you’re considering refinancing your debt by switching to a different lender…
Unless… they can lower your interest rate.
Ask for a better deal and you’ll be surprised how fast your rate gets cut!
This is such an easy win, but most people never make the call.
Trust me. This discount will help you pay off your debt much faster. And is well worth the 10-15 minutes you’ll spend on the phone.
Let’s say you have five debts, ranging from $2,000 to $10,000. What should you do?
Take advice from Robert Kiyosaki and John Burley:
Pay off your smallest debt first.
Then keep rolling those payments into the next debt.
In our example, this means paying off the $2,000 debt by making more than the minimum payment each month.
Once that’s paid off, take the money you were putting towards the $2,000 debt, and add it to the minimum payment for the next smallest debt.
By doing this, you have a “snowball effect” working for you. Helping you pay your debts faster and, building up good saving habits for the future.
3. Repeat After Me: “Pfffft! Hell No!!!”
There’s nothing banks love more than trusted customers…
Except for trusted customers with growing debts!
That’s why, if you’re a trusted customer, there’s a good chance the bank will offer you higher credit limits.
Now repeat after me:
“Pfffft! Hell No!!!”
Higher credit limits is the banks way of trapping you into overspending and accumulating even more debt. Don’t fall for it!
Instead, work on lowering your limits over time, and focus on keeping your spending in check.
Creating Healthy Financial Habits
Started tackling your personal debt using these three tips.
They are truly the most effective things anyone can do right now to bring down their personal debt. And as you eliminate more and more debt, you’ll have more money available to save, invest, or enjoy life’s little luxuries.
After that, you may want to look at developing your healthy financial habits further:
- Creating and sticking to a budget
- Building an emergency fund
- Regularly reviewing your financial goals
To sum up: ask for a discount on interest rates, make additional payments, and don’t increase your credit card limits.
Soon you’ll be living without the stress of mounting debt –– and enjoying much more of life!
And if you want the fastest way to get into property and start earning money even if you have no borrowing capacity… check this out:
Finally, Here’s Something That Works!
Everyday investors earn $100,000… $270,000… even $369,000 a year or more… All through this simple, proven property strategy:
Check it out!
Until next time,