Buffini & Company Blog

Get Out of Debt Forever

A girl cutting the debt card with scissor

Brian Buffini’s Mid-Year Bold Predictions 2024 registration is now open. Has there ever been a more complex time in thereal estate industry? Brian will give you the inside scoop on what’s taking place behind the numbers at 10 a.m. PT on July 22. Register now.

Are you ready to have a strong spring season, converting new leads into more sales and income? We’ve got you! At Buffini & Company, we provide the best services and resources that help thousands of clients reach their goals and beyond. Click here to sign up for a free Business Consultation to learn about how you can achieve that level of success too.

During the pandemic, consumer debts reached record lows and savings rates reached record highs. Now that we’re no longer wearing masks or staying indoors, however, it seems like we’ve cast off our restrained lifestyles and budgets. Credit card debt has ballooned and savings have plummeted – all at a time when interest rates have more than doubled. The truth is, if people really understood the crippling effects of consumer debt, they’d get out of it and stay out of it forever. Here are some simple techniques you can use to start eliminating debt and begin creating wealth today:

Snowball your credit card debt

Statistics tell us that 35% of American adults currently have credit card debt. Of that number, 43% don’t even know the interest rate on their cards! When it comes to your finances, ignorance isn’t bliss, ignorance is poverty. Using a credit card is appealing because it means you can get what you want immediately. But debt costs money. It borrows from your future and, because of high interest, it means you ultimately pay far more than that impulse buy ever cost. A powerful way to get a handle on credit card debt is to use the snowball effect. Start by focusing on one debt at a time. If you have three credit cards, tackle the one with the highest interest rate first. Take the minimum payment, add an amount to buy down the card and then combine them together. When that card is paid off, tackle the next one. Take that minimum payment, plus the amount you were paying on the previous card, and roll it over. Continue in this way and your credit card debt will be eradicated. 

Unleash the compounding effect

After you pay off your credit card debts, your snowball will start to roll downhill and you’ll be able to build a huge snowman out of it! A big part of anyone’s financial success is investing to grow and unleashing the power of the compounding effect. Say, for example, you invest $100 a month for 40 years with an 8% rate of return. You’ll have invested $48,000 – but the compounding effect will make it worth $350,000. As Albert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” Make sure you get the compounding effect working in your favor.  

Consumer debt is insidious in today’s world but, when you know how to handle it, you’ll get on track to phenomenal success and you’ll be able to help your family, friends and clients to do the same. To learn more, listen to the latest episode of “It’s a Good Life

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

June 12, 2024

Seize the Day and Live the Good Life | Buffini Podcasts


In today’s hectic and fast-paced world, many people get so fixated on [...]

June 5, 2024

Your Personal Growth Journey with Dave McGhee | Buffini Podcasts


No matter what difficulties or challenges you encounter [...]

May 3, 2024

Beating Procrastination


Procrastination is something that’s often misunderstood. The [...]

May 2, 2024

Maximize Your Life Using Your REALStrengths | Buffini Podcasts


Are you stuck in your comfort zone? In today’s challenging [...]

April 25, 2024

Calming the Chaos with Time Management Strategy


In today’s hectic world, it can feel like there’s never enough time [...]

April 5, 2024

The Slow Burn of Success: Cultivating Patience


In today’s super-fast world, we’ve come to expect success at [...]