They call it “Januworry” for a reason! And now we are faced with purging the festive splurge and back to paying off our debt. Yikes!
We are in the middle of our series titled Financial Freedom. So, what have we learned so far? It’s all about MINDSET! How badly do you want it? Exactly how badly do you want the ability to choose where and how you work? And how desperate are you to squash your debt?
Show notes
- With a strong background in the banking industry, I know the secret to debt that most people don’t understand
- Credit facilities understand consumer behaviour and how best to manipulate the repayment plan to the lowest rate possible to entice you to buy their products and services
- At the heart of debt is the perception that the offered product and repayment rate seems achievable to pay back
- The problem is that we underpay for the cost of the product and the linked interest
- The GAP of what you currently pay and what you should pay becomes compounded to pay back
- You end up paying up to four times more money for the product
- The first step to overcome debt is to BEAT the interest curve by paying MORE than what is required
- The faster that you can overpay, the quicker you settle the loan, and the less interest you pay
- Interest is paying the banker to sit on the beach! The money you pay in interest could be saved for YOUR holiday!
- I encourage you to pay at least one extra payment in a 12-month period
- For example, if you pay one extra home repayment a year, you will settle your home loan up to six years earlier
- The quicker you pay for short-term debt, the faster you can be financially free to save for your DREAMS!
- The second step is to pay off the most expensive debt first but give yourself a quick win too
- The sense of satisfaction to kill all debt one loan at a time will boost your financial confidence and appreciation for your hard-earned cash
- Finally, after the you have settled your short-term debt – take the money off the table! Invest this money to earn free money. Yay!
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