Have you ever been frustrated having to use a credit card again after just paying it off?

Does it ever seem like it’s a never ending circle of charging it up, paying it off, and then charging it up again?


That’s what I mean by the “Rubber Band Debt Effect.” Paying off debt only to use it again where you feel like you never quite get ahead. Does this seem familiar?

If so, you’re like many, many others I’ve spoken with who want to save and pay off their loans, and feel like they should be further ahead than they are.


Here’s why it happens….

When you use traditional methods taught by “financial experts” by paying off the debts only with lowest balances or highest interest rates, you’ll find yourself stuck in this trap. My experience has shown me it will take nearly twice as long (and you’ll be more discouraged) using these old, worn out, stale methods.


Instead, focus on paying off only one loan at a time that frees up the most money with the least amount of dollars, while not depleting your savings.


You need to do it with balance. Most people that apply Dave Ramsey-like methods use all or most of their savings to pay off a car loan, for example, and then something will inevitably come up that will cause them to charge money on a high interest credit card. That seems insane, doesn’t it? Pay off a low interest auto loan only to have to charge up a high interest credit card? THIS HAPPENS ALL THE TIME!

Have some savings first – hopefully at least one month’s of expenses.

Then, only focus on paying off the loan that has the highest payment for the balance.

Once that’s paid off, move to the next one and so on and so forth.

When unexpected expenses occur, AND THEY WILL OCCUR, use your savings to pay for it. When this happens, be sure to build your savings back up BEFORE you start paying extra to your loans.


Bonus TipDon’t pay extra to mortgages, auto loans, student loans, or any loans where the payments remain the same as you pay them down. Save up the money to pay them off in full.


Paying off your loans with the right balance and wisdom will allow you to keep your sanity while paying off your loans faster and safer than conventional methods.

If you haven’t done so, download our special report on ways to have an extra $500 each month WITHOUT living off rice & beans, and pay off your loans even faster! By having more monthly cash flow in your life, you’ll have greater financial peace today!