- Tips to help you get out of debt and stay out.
- Paying Extra Principal: the key to getting out of debt more quickly. An extremely convenient way to do so is to pay 1/2 of your regularly scheduled monthly payment bi-weekly–that is if your lender accepts bi-weekly payments and posts the extra money paid so it reduces you balance–and you get paid bi-weekly. If either your lender doesn’t accept bi-weekly payments (and some lenders don’t, especially mortgage lenders), or if you don’t get paid bi-weekly, you can accomplish the same advantage by paying the equivalent of 13 full payments in 12 months (your full payment plus 1/12 of your full payment–as extra principal–each month). This spreadsheet can be used to compare the difference, and note that if one pays the equivalent of 13 monthly payments each year, it doesn’t make a significant difference if it is paid bi-weekly or monthly. Of course, if you pay larger amounts of principal, your advantage will be even greater–you’ll end up paying much less interest. Bi-weekly vs Monthly Excel spreadsheet.
- Accelerated Debt-Reduction Plans: A PowerPoint slideshow to help people get out of debt more quickly.
- Payday Loans and other extremely high-rate loans–to be avoided!
- Usury