This week Gail talked about how long we take to pay off our debt and the realities of debt fatigue. She also talked about her preferences on where to go and get help.
Debt fatigue occurs when you’ve been in debt for a long period of time, you aren’t making much headway in paying the debt off, and you “run out of steam” for dealing with the debt.
Re-Order Your Debt
The first assignment this week was to re-order the debt on our list, so the most expensive (ie. debt with the highest interest rate) was at the top.
When will you get out of debt?
Next came the decision for how long you want to be in debt. The recommendation to avoid debt fatigue is to pay off your debt within 3 years.
For this task, have your Debt Repayment Worksheet from last week handy.
What if it’s Too Much?
Now’s the time to get honest with yourself.
Do you have too much debt?
Will it take you over 3 years to pay off your debt? Over 5 years?
At this point, it’s good to seek out help and advice.
Gail closed out the week again with some of her pearls of wisdom.
There were a couple extra pieces of financial advice this week that weren’t Money Master Class specific, but are certainly on topic.
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