Quotes

Stuart Varney

There seems to be a shift in the American Dream. Owning a home is no longer at the top of the list…it’s now being debt-free!

Simon Cowell

In a letter addressed to himself as a retrospective of his life, on the years after losing his business in 1989, Cowell writes…

“For two or three years you have earned nothing of substance but you have racked up debts of nearly half a million quid. Suddenly it all grinds to a halt. It’s over!”

Cowell clawed his way out of debt month by month and remembered the day he cleared his debts as one of the happiest days of his life. From this, Cowell draws the biggest life lesson he wishes he could have known earlier…

“Carrying a debt is a much bigger burden than having nothing.”

Consumerism Commentary

If you have a certain amount of money available to pay off a portion of your credit card debt each month, even if that certain amount changes, there is a mathematically correct way of paying off that debt.

Step 1. Order your debts from highest interest rate to lowest.
Step 2. Pay the minimum to all debts every month.
Step 3. To your debt with the highest interest, send all extra available cash.
Step 4. Repeat every month.

It's that simple. This is mathematically the best method for paying off your personal debt. No other method will get you out of debt faster and save you as much money.

Debt To Income

Not all debt reduction plans are effective. Most folks who are deeply in debt have numerous credit accounts open, most of which are carrying balance close to, if not well over, the credit limits.

One very effective method is known as "Debt Stacking". It is also known as "The Debt Snowball". The idea of the debt snowball strategy is simple. First you list your debts in the order that you want to pay them off. Once the first debt is paid in full, you then apply that payment to the next debt, which enables you to pay the 2nd debt off more quickly.

Next, once the 2nd debt is paid off you again take the total payment and begin applying it to the 3rd debt, and so on, until all of your debts are paid in full.

The best part about using the debt stacker strategy is that you will most likely pay off all your debt in 1/2 the time it would have taken otherwise!

Jeffry Evans

If you have multiple credit cards and a lot of debt, debt stacking is the best method to maximize your payments to the credit cards. I was once in $12,000 worth of credit card debt, and used this method to pay the balance off in less than 2 years. Simply put, the system uses the principle of attacking the highest interest rate credit card first, while only making minimum payments to the other cards.

Dave Ramsey

When I first started this, I used to tell people to pay off the highest interest rate first because that made sense mathematically. But then I figured out that if people did math, they wouldn't have credit card debt. This is not a math problem. This is a behavior problem. Personal finance is 80% behavior. It's only 20% head knowledge. Your probability to become wealthy has more to do with your behavior than it does your sophistication or your academic underpinnings.

The reason the debt snowball goes smallest debt to largest debt, even though that's mathematically incorrect, is that modifying your behavior and inspiring you to head in the right direction is more important than the math. The way that I get people out of debt actually works, and some of these other theories don't. I'm not a theory guy; I'm a practical application guy.

Economic Advantages Corporation

PriorityPay Plus stacks your debt in order of highest interest first because that maximizes your savings. We then restructure your payments on a Biweekly schedule which generates one extra payment each year. Applying these funds to the highest interest loan significantly accelerates its payoff so you see results much sooner.

You benefit from both the right math and the acceleration that snowballs your payoff!

And talk about practical application... we don't just leave it up to you to do on your own... we actually do it for you with electronic debiting and direct payments to your providers.

Now you can...

Get out of debt years sooner
Save thousands of dollars in interest expense
Save time and hassle trying to do it yourself
Reduce your stress
Improve your credit score
Increase your future wealth

PriorityPay Plus takes all this great theory and actually makes it work for you!