having a financial crisis

Pointers for Paying Off Debt Fast

Those who are part of the Lockheed Martin retirement plan might have to make changes to the way they save money. That is because Lockheed has been forced to make changes due to the current U.S. regulations. If you have been listening to the developments, you might also be rethinking the way you approach your retirement savings. And that’s a good thing because it means you are aware of your financial issues.

Studies show that 48% of older Americans have not saved anything for retirement. It’s quite likely that one of the primary reasons for this is the enormous amounts of debts that people are dealing with daily. Even those who have invested a decent amount of money are struggling with debt – 73% of mass affluent Americans have non-mortgage liability. It’s safe to say that debt tends to hold people back and paying it off will tremendously boost their retirement savings.

For that reason, you need to find ways to eliminate your debts faster.

1. Pay more than the required minimum

Most people make the mistake of paying only the minimum monthly payments on their debts. Don’t be like them. If you want to pay your debts faster, you need to pay more than the minimum. Once you pay the required amount, you need to save more and then channel that money toward debt repayment.

Eat out less, work an extra shift, buy fewer clothes, stop buying expensive gifts, etc. Every bit of extra money saved will go a long way in helping you pay your debt faster.

2. Tap into home equity

If you have been paying off your mortgage faithfully, then you probably have built a decent amount of capital. You can, therefore, borrow a home equity loan and use it to pay off your debts with higher interest rates. This will then enable you to have fewer loans. So long as the home equity loan is of a lower interest rate and you use the money saved from paying off the other loans, you will pay off your debts faster.

3. Take advantage of credit card balance transfers

When credit card service providers want to attract new customers, they tend to offer new products at 0% APR.  You need to take advantage of these opportunities when they arise. Then you can transfer some of your balance to the new credit card. So instead of paying debt at high-interest rates, you will get a reprieve that allows you to pay off the transferred balance at 0%. If you pay that debt faithfully each month, you will pay it off faster because you are not overwhelmed by the interest charges.

But be sure to read the fine print. And ensure you are capable of paying the balance within the given time frame. Otherwise, you might end up dealing with penalties that make your debt more unmanageable than it was.

4. Negotiate with your creditors

financing

If you are drowning in debt, it’s always a good idea to try and negotiate with your creditors. Let them know your financial situation and ask for a lower interest rate or an extended repayment period. When faced with the choice of a debtor filing for bankruptcy or getting less money, most creditors would rather get less money. So what this does is help you pay your debts faster.

5. Get debt counseling

Get counseling is an option that is available if you feel completely overwhelmed with debt and have no idea of where to start. Find a free debt counselor to give you financial advice on your mortgage, how to budget, the repayment strategy to implement, and other information that you need.

Paying off your debt frees up your financial resources so that you can make changes to your retirement plans as you see fit. Find ways to pay your debts faster so that you can save and enjoy the effects of compounding. The solutions exist. You have to find the ones that best suit your financial needs.

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