Quick and Efficient Tips on achieving Financial Goals

Are you still worrying, getting stressed out and losing sleep over unpaid debts? Are your credit card bills going through the roof and you’re not sure how to pay them all off?

We’re here to help – with our debt consolidation system, you’ll never feel overwhelmed by bills and regain control in order to better manage your money and have peace of mind.

Side view portrait of handsome bearded man reading documents standing behind glass wall while working in office

If you want to take back control now, we suggest following these tips and you’re well on your way.

How do I get a loan to pay off debt?

With us, this is fairly simple and straightforward. Simply apply for a loan, tell us a little bit about yourself, and that’s it.

How to pay off debt fast without a loan

While it may not be feasible to pay off debt fast without taking a loan, what you can do is take a debt consolidation loan with significantly lower payments made to just one lender for all your individual debts.

How to pay off business debt fast?

Being a business owner doesn’t mean that it should adversely affect control over your finances. With a debt consolidation loan for self-employed, you can reduce total loan payments, enjoy a better future credit score and focus on stronger financial planning.

How to aggressively pay off credit card debt

A credit card consolidation loan can be the perfect way to find relief from the burden of a credit card debt, fast. With multiple credit cards, you often find yourself drowning in unmanageable debt. With a credit card consolidation loan, you can cut down the total debt you owe, fix your personal finances and gain a better future credit score.

How to pay off large credit card debtConsolidation loan for credit card debt

Unlike other financial products which promise to help you pay off large credit card debts, a debt consolidation loan can act as a lifeline for those struggling with unmanageable credit card debt. Not only will you have fewer repayments, but you’ll also have more control over your personal budget, and see a better credit rating in future.

How to pay off £3,000 in credit card debt fast

This can be achieved in a number of ways – e.g. you could make a higher-than-minimum payment each month, transfer the balance to a credit card which has 0% introductory APR or use cash from a savings account. However, by consolidating all your loans, you can pay off your debt a lot faster.

How to pay off £6,000 in credit card debt

If you owe £6,000 on a card with 15% APR, your issuer will probably ask for 2% of the balance as a minimum payment. If you only pay £120 as a minimum payment, you’re still going to pay over £9,000 in interest by the time you pay it off. Why fall into this trap when you can pay significantly lower payments with debt consolidation

How to pay off £25k in credit card debt

There are many ways to pay off a large credit card debt, including the snowball and avalanche method. Unfortunately, most conventional methods of paying off debts involve large payments and heavy interest rates. With debt consolidation, you can reduce monthly outgoings, improve upon your monthly budget and more.

How to pay off £50,000 in debt in 2 years

Accumulating £50,000 in debt is not impossible and many people end up in this predicament. In a worst-case scenario, you could file for bankruptcy. Alternatively, you could come up with a debt management plan on your own. Best yet, save yourself the trouble and opt for a consolidation loan.

Debt snowball vs. debt avalancheMistakes to Avoid When Trying to Get Out of Debt

The debt snowball method may work well if there are several small debts to be paid off, or if you need to pay off a lot of debt in general. The debt avalanche method will help you pay lower interest and get you debt-free perhaps a little faster.

What is the debt snowball method

With the debt snowball, you pay off your debts in order – i.e. from the smallest balance to the largest one:

  • Make a minimum payment on all accounts
  • Put all your extra money into the account with the smallest balance
  • After paying off the smallest debt, take the remaining money and funnel it toward the next smallest debt. Repeat until all debts are paid off.

How to make a debt snowball chart

  • Gather all your debt (not including mortgage)
  • Make a list (smallest to largest debts)
  • Make minimum payments on all debts except for the smallest
  • Find extra money wherever possible (garage sale, side job, etc.)
  • Put the extra money towards the smallest debt
  • Once the smallest debt is done with, roll over the payment to the next debt
  • Repeat until all debts are done with!

How to snowball debt payments

Consider the following debts: auto loan (£15,000, 4.5% APR); credit card (£7,000, 22% APR); student loan (£25,000, APR 5.5%); personal loan (£5,000, APR 10%).

Using the snowball debt payment method, you’ll pay off your accounts in the following order:

  • Personal loan – £5,000
  • Credit card – £7,000
  • Auto loan – £15,000
  • Student loan – £25,000

Does the debt snowball method work?

Household Financial Management Concept. Focused Man Reading Tax Or Debt Notification Papers Sitting At Laptop Indoor

While the ‘math’ says it works, but it takes longer and costs more than most debt-relief options, including debt consolidation loans.

How to calculate debt snowball

Let’s assume the following debts:

  • £500 on medical bills
  • £2,500 on credit card debts
  • £7,000 on car loans
  • £10,000 student loan

Using the debt snowball system, you would make the following minimum payments:

  • £50 on medical bills
  • £63 on credit card debt
  • £135 on a car loan
  • £96 on student loan

However, you will not be making a minimum payment on medical bills. Now, assuming you made an extra £500 every month due to savings or a side job, you’re now paying £550 on medical bills (£50 as well as the extra £500) – you’re debt will be gone in probably a month.

Now you can take your ‘freed-up’ £500 and get to the credit card debt. You’ve now paid £613 altogether – i.e. £550 + the minimum payment of £63. So, in approximately 4 months, you won’t have any credit card debt to worry about.

Let’s take care of that car loan – £748 per month to be precise. In 10 months or so, it’ll be a thing of the past. By the time we get to our student loan, our biggest debt, we can dedicate £844 per month toward it; in 12 months, that’ll be out of your hair too.

You’ve managed to do away with £20,000 in debt in just 27 months – you’re a rock star!

Avalanche method to pay off debt

How to get out of debt

Sometimes referred to as “debt stacking”, this method sees paying off your accounts in descending order – from the highest interest rate to the lowest:

  • Make a minimum payment on all accounts
  • Put in all the extra money you can towards the highest interest rate account
  • After you pay off the highest interest rate debt, pay as much as possible on the next highest interest rate account.

Each time an account is paid off, you’ll have some extra cash every month to contribute towards the next debt.

Avalanche debt reduction

Much like an avalanche, you will start to see your debt reduce after a while. You’ll eventually gain momentum – your debts along with the interest you pay on them will get smaller and dissipate like a downward-moving sheet of snow.

Avalanche debt reduction spreadsheet

A spreadsheet helps you order your debts from the highest interest rate to the lowest. With the main focus being your interest rate and minimum payments, ending up with a negative number after subtracting income from expenses, for example, means you need to find areas in your budget where you can potentially save.

How to pay off debt on a tight budget and save money

Young couple reviewing invoices and doing family business plan. Concept of money and economic problem for man and woman living together

There are many ways to save money when you’re on a tight budget – switching to cash for daily expenses, cutting back on major expenses, and re-assessing your food bill. As for paying off debt, one of the best ways to do it is through a consolidation debt loan.

How to pay off credit card debt with no money

Again, debt consolidation loans can be the answer if you are facing any kind of debt defaults. You can lower your monthly repayments and easily escape from a potentially sticky financial situation, especially when you have a steady income and high-interest loans that are crippling your monthly budgeting.

How to make extra money to pay off debt

  • Start saving today
  • Minus all the major expenses
  • Get a side job

Tips to save money and pay off debt

  • Open a savings account
  • Deposit all your money there and gain a small profit each month
  • Use debt consolidation loans to pay off debt

Good financial management habits to develop

good financial habits

Great financial management habits develop by sticking to the basics: only buy what you need, don’t use your credit card to buy everything, and reassess need vs. want.

Daily financial habits

  • Track all your income and expenses
  • Put away money for a rainy day
  • Pay ALL bills on time!

Positive financial habits

  • Spend mindfully every time you feel the urge to impulse-buy something
  • Start investing
  • Don’t let the bad days knock you down

Bad financial habits

  • Ignoring your bills
  • Complaining about how much you earn
  • Thinking that more money will bring more joy

Consequences of poor financial habit

Poor financial management can very easily lead to spending too much money. You’ll also rack up your debts fairly quickly and generally be ill-prepared to face unexpected life events.

That’s about it. Follow these tips to pay off debt and achieve your key financial goals.

We offer Debt Consolidation Loans for homeowners.

Our team is on hand to help with number of questions you may have.

If you are struggling with debt, please visit Money Advice Service for help and advice.

We are a broker, not a lender.

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