Medliorate

Improving medical students

How to Pay Off Debt

Posted by medliorator on November 25, 2007

1. use online bill pay, which reduces the number of physical checks and stamps to buy.

 

2. When I receive a bill from a creditor, I send in a check for the “monthly minimum payment due”.

 

3. After making minimum payments (to all accounts), I then go about “attacking my debt” – by making extra payments, throughout the month, if possible, to a specific creditor.

 

4. By using online bill pay, I can schedule MULTIPLE extra debt payments each month.

 

5. Please note, when making an extra payment, it is always a good idea to write the words “apply to principal” in the memo section of the check. Some companies will “hold” any additional checks they receive and cash them at the beginning of the next billing cycle. Needless to say, you want your creditors to cash your additional checks as soon as they receive the checks.

 

a few things that I would NOT do:

 

1. sign-up for a bi-weekly mortgage service. Why should I pay someone to set up a system that I can set up for myself, for free?

 

2. Use a credit counseling service.

 

3. Obsess over interest rates. I did do one transfer from a high rate card to a zero rate card, but I didn’t spend my time moving balances from card to card. Instead, I really, really focused on paying off principal.

Exactly HOW I Pay Off Debt, Mortgages And Credit Cards Early [No Credit Needed]

Advertisements

One Response to “How to Pay Off Debt”

  1. step number 5 – I wasn’t aware of that. Excellent advice – I’ve also moved over to paying all bills online to save a few bucks. Nice article.

Sorry, the comment form is closed at this time.

 
%d bloggers like this: