In this blog, we have covered a few tips to help individuals reduce their debt burdens and the stress that inevitably comes along with it.
It is no mystery to anyone reading this that debt is undesirable. While it is sometimes necessary, the truth is that paying interest to an individual or bank that lent you money is essentially throwing money down the drain.
For that reason, it is important to always remember the need to eat away at your debt. Paying just the minimum payment on a credit card, for example, will have an individual paying easily 5-10 times the original balance over the course of repayment. Even paying an additional $10 per month will add up to a big difference in the long run.
If you calculate it out, it may seem pointless to make such a small payment increase per month, but depending on a credit card’s interest rate, balance, and minimum payment, $10 may be all the principal being paid each month. So in all reality, paying an extra $10 is effectively doubling your payment, and halving your repayment time.
It is important to remember that you did not build up the credit card debt overnight, and will not be able to repay it overnight either.
As long as you continue to chip away at the debt, your burden will be drastically reduced before you know it, and you will be moving closer and closer to a debt-free life.
Brad Botes is a principal of each of the Bond & Botes Law Offices throughout Alabama, Mississippi, and Tennessee. He holds a Bachelor of Science from the University of North Alabama, and a Juris Doctorate from Cumberland School of Law at Samford University. He and his team of bankruptcy lawyers have spent over 30 years guiding people through financial challenges. Read his full bio here.