Good Financial Reads #2 – Paying Off Debt

The other day I came across a whole bunch of blogs that talk about the obstacles faced when taking a journey towards becoming debt-free and I realized it is nothing less than a full-fledged transformation, requiring a shift in both attitude and habit. The journey can be tough, riddled with obstacles, some of which are easy to beat and some which aren’t. It’s not possible for a single blog post to explain the different levels involved in achieving freedom from debt, so here are a few articles written by some amazing bloggers to give you a good idea.

How Should You Pay Off Your Debt?

Debt Reduction Methods and Philosophies: Snowball, Avalanche and More at Consumerism Commentary. This post outlines a few debt-repayment techniques and offers comments about which method is best. If you’re burdened with multiple forms of debts (credit cards, personal loans, etc.), you probably wonder where to start. You may consider paying off the loan with the highest/lowest rate, or the debt with the highest/lowest outstanding balance, or even consider paying them off all together, bit by bit. It can get confusing and over-whelming so it’s best to follow a system. To summarize, there are two basic approaches:

  • Debt avalanche technique – pay off highest interest rate first (this makes more sense to me personally, because in the long-run, you save money)
  • Debt snowball technique – pay off debt with lowest balance first (to help motivate you along the way).
    Do read the article to decide which method suits you.

Why You Should Get Rid of Debt

Benefits of Living Debt Free by 20′s Finance: An article to motivate you to reach your goal of being debt-free and staying that way. Corey, the blog author, points out how popular loans are and that many people just assume a good life without borrowing money in some form or the other, isn’t possible. It’s quite the opposite, as the article reveals – life without debt is actually better in a lot of ways. Read the post and see why 🙂

Getting Through The Journey

How Paying off Debt is Like Running a Marathon, guest post by Laurie at Three Thrifty Guys: Regardless of whether you’re at the start or end of your journey towards freedom, you can run out of motivation pretty easily. In my opinion, this post helps embody Woody Allen’s words, “Eighty percent of success is showing up” because you just have to keep at it even if you feel you can’t make it. The post helps you find the motivation to keep paying your loan back, keep cutting your own expenses, keep evaluating every financial decision with a critical eye, and lots more…

Once Your Journey Ends: Staying Debt Free and Happy

10 Rules to Eliminate Debt Revisited by Married With Debt: The post covers ten simple yet not-so-commonly-followed rules that help reduce debt and expenses while still spending a fulfilling life that culminates in a decent retirement. The main idea is that there is a lot more to financial independence besides debt elimination – you must grow your funds, stay away from excesses of all sorts, enjoy your life and save enough to retire without worrying you have too little. It’s a delicate balance and the article explains how to get it right.

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