My Debt just won’t go away
The bad thing about debt is that sometimes it just won’t go away. Sure, you are making some progress but you are not moving nearly as fast as you would like. Does this sound like your situation? If your debt is not being paid down as quickly as you would like, it is time to make some important changes to your budget and financial plan.
Are you only paying the minimum? If so, you cannot expect your debt to get paid down any faster. Lenders love people who only pay the minimum – this means more money for them over the long haul. Remember, the longer you pay on your debt the more interest you will be charged.
What type of debt are you facing? Some people do not make any progress because they don’t know what they are up against. You have to know what type of debt you have, how much you owe, and what interest rate you are paying. For instance, you may have $5k in credit card debt as well as a car loan for $20k. It may be in your best interest to tackle the credit card first because it probably has the higher interest rate. Not to mention the fact that you can get it out of the way, and then move on with the rest of your debt.
Above all else, remember this: sometimes it takes a while to pay down debt. Just because you want to go fast does not mean that you will be able to do so. You may want to rush, but slow and steady can win the race as well. If you continue to pay what you owe, plus a little bit more when possible, your debt will eventually disappear for good.
