The debt lasso method: a step-by-step plan to pay off your debt

“Queer Money Podcast” hosts David Auten and John Schneider created the method to pay off $51,000 in credit card debt.
3:18 | 06/02/20

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Transcript for The debt lasso method: a step-by-step plan to pay off your debt
David I'm done and we would definitely guys who host the ceremony I guess we have 50000 dollars went to bed and it is to find it. But the dead last in the. The debt less a method is basically. Last sewing all your debt into as few locations as hostile from wherever they are you have as few locations as possible to the lowest interest rate possible. It's also the fastest and cheapest laid after credit card debt and can help improve your credit score. When David and I realize that we had 51000 dollars in credit card debt. We do is look at the snowball method emulated the avalanche method and we estimated that it was gonna take about eight to ten years with either method to pay off a credit card debt. And he just didn't have the patience for that so when we sure looked at our entire situation. We realize that it was our credit card interest rates that was the biggest inhibitor to paying off your credit card debt passed. In attacks some some those rates were as high as 1% or more. So we thought we could remove that out of the equation. Helping us to we pale forget we realize that we can actually do so within less than three years that there are five steps to that last method the first is one make the commitment. Commit to not wearing any more credit card debt and she also commit to. Paying at least a specific dollar amount on your credit card month after month. The second tip is to trim if there's any credit card debt that you can pay up within the first month that you do so and get that could quit out of the way. Point number three is the last oh process and basically what that means is you take multiple credit cards or. Loans that you have and tried to bring them to the fewest number of places it's possible. All wild reducing net interest rate as the lowly duke who possibly get it. Hopefully through a balance transfer to a 0%. Introductory offer or to a low interest loan. Point number border. His army all of this. As soon as you're ready to start paying those balances down senate bill pay automate the whole process. Which makes point number five possible and that is to monitor monitoring allows you to make sure that those payments are being made on time and you get to watch that balance go down which is the most exciting part of the process basically what we're asking people to do is to take advantage. Of the offers that are out there whether it's. Your district credit cards or a load balanced personal loan and taking advantage of that opportunity and not increasing their standard of living. Or continuing to live the way they were digging in day out. With the debt lasts a message you're taking advantage of those opportunities to expect hang up your credit card pass and then you're more likely to actually pay off your credit card debt. One of the important things about the debt last methods along with all other methods of enough credit her dad is the first step and that's that commitment. You have to have a strategy. If you're not using a strategy of some sort of pay off your debt it gets very easy to. Not make that commitment to skip a month or Q stand less each month. It's the commitments that really makes all of these methods work. But then if you know something helps you that is going to help you get there faster why would change when he used it.

This transcript has been automatically generated and may not be 100% accurate.

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