Part 2 - Debt Clean Up | FINANCIAL CLEANSE SERIES | Summary and Q&A

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May 28, 2021
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Debt Free Millennials
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Part 2 - Debt Clean Up | FINANCIAL CLEANSE SERIES

TL;DR

This video provides tips and strategies for organizing and prioritizing your debts, including creating a spreadsheet, choosing a repayment method, and setting target end dates.

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Key Insights

  • 🥶 Ignoring debts or being too focused on becoming debt-free can hinder financial progress.
  • 👂 Creating a comprehensive list of debts and repayment details is essential for effective debt management.
  • 🥅 Choosing a debt repayment method that aligns with your goals and motivations is crucial.
  • 📅 Setting target end dates provides a sense of purpose and helps to track progress.
  • ❓ Trimming expenses in specific areas can accelerate debt repayment and improve financial stability.
  • 👣 Utilizing tools like debt tracking charts and workbooks can enhance motivation and accountability.
  • 💨 Acknowledging milestones and rewarding yourself along the way can make the debt repayment journey more enjoyable.

Transcript

welcome to part two of the financial cleanse my name is justine with debt free millennials and this video series is all about doing a quick cleanup of your finances just to check in with yourself see if you're actually hitting your financial goals or addressing problem areas that you know you need to address in this video we are going to be talking... Read More

Questions & Answers

Q: What is the first step in organizing your debts?

The first step is to create a spreadsheet or list of all your debts, including names, balances, minimum payments, and interest rates. This will provide a clear overview of your financial situation.

Q: How do you decide which debt to prioritize?

It depends on your personal preference. The debt snowball method focuses on paying off the smallest balance first, while the debt avalanche method targets the highest interest rate first. Choose the method that motivates you the most.

Q: How can I track my progress and stay motivated?

You can use free debt tracking charts or purchase a workbook that offers various activities to keep you motivated. Celebrate milestones, such as paying off half of your debt, with small rewards to stay encouraged.

Q: How can tracking my spending help with debt repayment?

Keeping track of your spending, especially in areas that tend to be budget busters, allows you to identify problem areas and make adjustments. By reducing expenses in these areas, you can free up more money to put towards debt repayment.

Summary & Key Takeaways

  • The video emphasizes the importance of taking stock of your debts and creating a comprehensive list including outstanding balances, minimum payments, and interest rates.

  • It highlights the two main debt repayment methods: the debt snowball method, focusing on the smallest balance first, and the debt avalanche method, targeting the highest interest rate first.

  • The video encourages viewers to set target end dates for each debt and find ways to trim their budget in order to allocate more funds towards debt repayment.

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