Pay Off Debt, Save Interest

Saving money is one of those tasks that's so much easier said than done. There's more to it than spending less money (although that part alone can be challenging). How much money will you save, where will we put it, and how can we make sure it stays there? Here's how to set realistic goals, keep your spending in check, and get the most for our money.

Simply calculating how much we spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. Once the money is freed from debt payment, it can easily be re-purposed to savings. Plus, the sooner we pay off debt, the less interest you'll pay, and that money can be saved instead.

How much interest are you paying?

It could be a good idea to review your statements to total up the amount of interest your paying each month or year.  It should clearly state your annual percentage rate (APR) and the amount of interest paid each period.  If this debt was paid in full, this would be the amount of money saved by not borrowing.   If you were to make an extra $100 in payments, do you know how much money you would save per year?  This is also a simple calculation.  Multiply the annual borrowing rate, or the APR, by $100 and you will see that a credit card with an 18% rate will cost you $18 for every $100 borrowed.