I think for the most part everyone who buys a new home expects to be paying it for around 30 years. The question is does it really take that long or can be accomplished much faster.
I you have the resources I am fairly confident that it can be done in less than 7 years. . I currently have 237,236 thousand dollars to eliminate including the house and I am going to show you how I am going to do it in 6.5 years.
Now keep in mind that I did not just wake up one day and decide to do this all of a sudden. I have been planning this for years and now have enough cash flow to make it happen. So lets dive into how I am going to accomplish this huge task .
My starting number that I have to work with is 1440.00 per month . My payments will be broken down weekly and in cases where I have extra money it will always be applied to my lowest balance card until it is paid off.
I am sure you can guess my next move which is to roll my original amount up and then add the minimum of the new debt . In my case this brings my new monthly payment up to 1566. There is an added benefit to paying weekly which I believe is worth pointing out. You will be showing stellar payment history which will help your credit and reducing a ton of interest.
Once you minimize the component of interest you make way for making some serious reductions in your principal. Just keep repeating this process from one debt to the next .
This is what that will look like in my case as this process getting rolling :
|Debt||# of payments||Payment amount|
So as you can see using a snowball method which is hand down a powerful process to eliminate debt no matter how small or large your debt. I will be adding flame to this fire by making my payments on my lowest balanced debt on a weekly basis where it available. The reason for this is it reduces the balance quickly which will dramatically reduce your overall interest charges.
Based on my calculations above it is estimated that this will take me 6.5 years to eliminate 237k worth of debt all while paying the exact same amount I am paying now but with laser guided efficiency.
Pretty interesting if you ask me and just for the record I have not even included things like refinancing my house, or using my crypto as collateral to get extremely low interest loans.
Please follow me on my journey and hopefully you can learn something from y experience along the way . I welcome any and all comments of those who come across this article.
George Webber @ Moderndaythrive.com