By financen | June 3, 2017 - 4:48 pm - Posted in Business, Finance

Because medium term notes must be paid within several years, proper financial prep can make the process easier. In order to prepare for a medium term note, a few simple steps must be followed to reduce old debt.

Pay More Than the Required Amount for Bills

An average credit card has a balance that’s within the 15,000 range, and a typical consumer pays a 15 percent APR. If the minimum monthly payment is made for a bill that’s structured this way, the amount won’t be paid off quickly. The best way to get rid of a high credit card bill is by paying more than the minimum monthly payment requirement. This strategy is very beneficial because it speeds up the debt process and reduces interest costs. If another credit card is needed after the debt for old cards is paid off, always review the fine print. In order to avoid costly problems down the road, ensure that the terms for the credit card lack prepayment penalties.

Consider the Debt Snowball Strategy

The snowball method can be very helpful while paying more than the minimum amount to decrease debt. Begin by making a list that includes the lowest bills and the highest debt. Then, carefully calculate all of the excess funds; this money should be used to pay the lowest debt. For the larger loans, use a strategically portioned amount of excess funds to pay the minimum payment. When the lowest balance is successfully paid, use the extra cash to pay the next balance that has the lowest payment amount. Over time, this strategy will gradually get rid of the bills, and the leftover cash can be used to reduce debt for the largest loans.

Pursue Other Financial Opportunities

After snowball method are in progress, other steps must be taken to speed up the debt reduction process, and the best way to accomplish this is by pursuing practical financial opportunities. Although this strategy may seem challenging, there are easy ways to generate extra cash for bills. For example, during the summer, considering mowing grass for neighbors. When winter arrives, a lawn mowing service can be restructured according to the weather conditions. If snow impacts your community, many homeowners will need the ice removed from their landscape and driveway.

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This entry was posted on Saturday, June 3rd, 2017 at 4:48 pm and is filed under Business, Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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