Quick Look
- If you have paid off all your debt that has double digit interest rates (or something close to it, like 8 or 9%) mark this task complete!
- Getting out of the debt cycle can be one of the most challenging things to overcome but once you’ve done it you have set yourself up for making incredible financial progress.
Contents
Congratulations!
You have eliminated your most costly debt! Whether it was $500 dollars, $50,000 or more, you found a way to stop acquiring new high-interest debt and pay off what you had.
Seriously. You crushed it!
No longer are you sending money to a lender and having a good chunk of that money going towards interest to fund items purchased months or even years ago.
Depending on how you classified your “high-interest” debt, you might not have any debt left. If you do, it should only include lower-interest rate debt or more expected long-term debt (e.g. a mortgage or student loans with lower interest rates). In all likelihood, this remaining debt was for a genuine investment in your future (like education or possibly a home).
As you move on to future tasks in your MoneySwell plan (subscribers only), you will be guided to make decisions about how to handle this “medium-interest” and “low-interest” debt. The balance you’ll be trying to strike will be between paying off that debt vs. investing any extra money you have, or further building up your emergency fund.
But that is for another day. For now, it’s time to celebrate your success!
Take Action
- In the notes section, write down the total amount of debt you were able to pay off as a reminder of your incredible accomplishment!
- Jot down what worked for you to not only pay down your debt, but keep you from acquiring new high-interest debt.
- Write down a few notes about how removing this debt will allow you to change your life. This could include new hobbies or opportunities you can pursue, or ways to make your financial future even brighter.
in Boulder and San Diego.