How Debt is Like a School Bully

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There’s nothing worse than a schoolyard bully, except maybe debt. That’s especially true when you have a lot of debt or don’t know how to pay off your debt.

In fact, debt, in many ways is no different than a bully, but there are ways to win this battle.

Don't let your debt bully you. Take back control today! #payingoffdebtfast #payoffdebtquickly #payoffdebtononeincome #payingoffdebtips #payoffcreditcarddebt #payoffcreditcards #consolidatingdebt #consolidatingcreditcards

Debt Steals Your Lunch Money

Okay, it might not actually be your lunch money, but the cold hard fact of the matter is that when you have a lot of debt whether it is credit card debt, a car loan, or even a mortgage, your creditor is taking money out of your pocket and putting it into theirs.

This money – I’m talking about the interest you are paying each and every month, is money lost that you will never see again.

It isn’t buying you something new that you need or taking you on a trip, or even making your future more secure.

It is simply the price you are paying to borrow money, and it adds up fast.

For example, when I bought my house and started making mortgage payments, only $41 a month was going to pay off the actual principle of the house.

The rest was going straight into the bank’s pocket.

Now, I’m sure they were pretty happy about that, but I can tell you, I sure wasn’t when each month I’d look at my statement and after a year, the principal had only gone down $492.

You see banks front-load all that interest.

Car companies do as well, so that means for the first few years, or a lot of years when it comes to a mortgage, all you’re really paying is interest.

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Debt Steals Your Peace of Mind

Just like a bully at school can make you feel depressed or anxious, having a lot of debt can do the same thing.

Think about it.

How many nights do you lie awake worried about how you’re going to pay off your debt?

How often do you worry about having a money emergency and not having the money to pay for it knowing you’ll have to add to your debt load?

I know. I’ve been there.

When I owned $87K in debt, trust me, there were a lot of sleepless nights.

When you have a bunch of debts, it’s hard to be happy and live your life without worry.

Debt Steals Your Self-Confidence

A bully will find your weak spots and exploit them by calling you names, taunting you, and telling you that you’re worthless and not as valuable as those around you.

It’s a terrible feeling.

Debt can do the same thing. You look around and see others, perhaps your friends and family members that are in a

much better financial situation, and you start doubting yourself.

You wonder why you haven’t been as lucky or disciplined.

Your debt starts to embarrass you.

Maybe you can’t join in on a family vacation or a night out with friends.

Over time, you start to feel like there’s something wrong with you.

You lose your confidence…

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Debt Steals Your Future

For some, the torment of a bully has life-altering consequences. Some people can be scarred for life due to being bullied in school, and even worse.

While debt might not cause physical harm, it can steal your hopes and dreams.

Perhaps you wanted to retire early, or travel the world in your 30’s, but you can’t because you have too much debt.

Debt can alter your life in so many ways, you may feel that you can never have the life you dreamed of, but that doesn’t have to be the case.

Even if you’re drowning in debt, you can take this bully by the scruff of the neck and say – no more!

You can conquer your debt and get back your life.

and here’s how…

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First Determine the Types of Debt You Have

First off, you want to put your debt into categories. For example, if you have credit card debt, put that in one category.

Then if you have a mortgage, a car loan, or other personal loans, but those in their own categories.

Then determine the interest rates you are paying on each of your debt categories. Your credit cards might be 15% or even higher.

Your car loans could be anywhere from 1 or 2% up to 10 or 12% or higher if you have bad credit, and then your mortgage is most likely anywhere from 1 to 3% and up to 5 or 6% depending on your situation.

Pay Off High-Interest Rate Debt First

Once you’ve got everything organized, you’re going to want to pay off your high-interest rate debt first.

That usually means your credit cards.

If you’re paying 10% or higher on credit card debt, then you might want to consider debt consolidation with a personal loan.

What this will do is let you make one payment, instead of several if you have more than one card, and at a lower interest rate.

You’ll be able to pay them off faster and for less money.

You’ll get to keep some of that lunch money for yourself! So, don’t be afraid of personal loans.

If used properly they can be a great tool in your financial toolbox and provide you with some debt relief.

Here’s a list of personal loan companies that work with people in all different types of financial situations:

Next Move on to Your Bigger Debts

Next, take a look at your auto loan. If it’s a lower interest rate, you’ll want to keep it where it is.

Then once your credit cards are paid off, use that extra money to pay extra on your car loan.

If you can knock off a year or two, you’ll save a ton of money on interest.

Finally, take a close look at your mortgage. If you’re paying a higher interest rate, you might want to consider refinancing.

If you can get a lower interest rate, and if the closing costs don’t add too much to your loan, you can come out better in the end.

Also, if you are refinancing your mortgage at a lower interest rate, it makes sense to try and get a shorter-term mortgage.

That means, if you have a 30-year mortgage, see if you can get a 15 year one.

If the interest rate is lower you may end up paying about the same each month, and you will save thousands of dollars!

If you want to look into a mortgage refi, one of your best options is to check out Lending Tree.

They also handle car loans as well.

Also, once you get one debt paid off don’t go crazy with that money.

Use it to make bigger payments on the next debt on your list.

You will find that you get things paid off a lot faster this way and save yourself $1,000’s of dollars in interest.

With a little planning and using the finance tools available to you, you can beat this bully and live debt-free much sooner and much easier than you ever thought possible.

Is your debt pushing you around? You might be surprised. Find out how your debt is like a bully and what you can do about it today! #payingoffdebtfast #payoffdebtquickly #payoffdebtononeincome #payingoffdebtips #payoffcreditcarddebt #payoffcreditcards #consolidatingdebt #consolidatingcreditcards
You might not realize it, but your debt is stealing a lot from you. Find out what and what you can do about it now! #payingoffdebtfast #payoffdebtquickly #payoffdebtononeincome #payingoffdebtips #payoffcreditcarddebt #payoffcreditcards #consolidatingdebt #consolidatingcreditcards
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