How to Use Profit First to Pay Down Debt
May 21, 2022
Hey, everyone!
I’m here today to show you how to pay down your debt faster. First, you have to take stock of the debt you do have and categorize it into categories called “good debt” and “bad debt.” Bad debt is high-interest debt like credit card loans, lines of credit, and student loans. Good debt is real estate loans or private practice loans. These loans are for a longer time period and have better interest rates.
Now, you have to decide which bad debt you’re going to eradicate first!
Also, make sure you have a profit savings account and that you’re allocating a percentage to each week. I have a video on YouTube that can help you if you’re unsure of how to do this! The best way to handle this is to stretch yourself as much as you can handle. It would help to financially plan out each month so that you’re able to take care of yourself while tackling that debt. Bad debt is what you want to go after first because of the bad interest rates!
Commit to a weekly transfer that goes straight into this profit savings account to tackle your bad debt. Towards the end of the month, you can use a portion of your profit distribution to help pay down that bad debt.
Before you know it, your bad debt will be decreasing quicker than you thought with the amount of dedication you’re putting into it. Remember that all of this stretching financially will save you in the long run!
Make sure to watch my video to learn more!
Feel free to reach out if you have any questions or visit my website: https://www.profitfirstdentist.com/
Did you love this blog? You can check out more of my past blogs: https://www.profitfirstdentist.com/blog
- Barb Stackhouse
SUBSCRIBE FOR WEEKLY LIFE LESSONS
We hate SPAM. We will never sell your information, for any reason.
