Rollover Method Vs. Bend Over Method
In case you're not familiar with the Rollover Method of debt repayment, here it is in a nutshell.
As each debt is paid off, that debt's payment amount is then applied to (rolled onto) the next debt, and so on until all debts are paid off. As you will see when you use the G.O.O.D. calculator, the rollover method can save you a ton of money in interest charges, and allow you to get out of debt sooner than you ever thought possible.
The Bend Over Method of paying off your debts is where you continue to make just the minimum payment on each debt for years to come. In this case, you are bending over so the lending institutions can keep giving it to you up the wazoo.
How A Penny Saved Can Be More Than a Penny Earned
If you take an action that results in permanently lowering your monthly expenses by, let's say, $10, that $10 savings will continue to add up each month. After one year you will have saved $120. After ten years you will have saved $1,200. And so on.
But what most people fail to realize is that if you apply those $10 monthly savings to pay off high-interest debt, the savings can add up to thousands of dollars of interest savings over time.
The G.O.O.D. calculator includes a scrollable list of 60 different ways you can reduce your monthly expenses. When you use these savings to pay off debt, it's like adding booster rockets to your plan.
Finally, once you complete your G.O.O.D. plan, be sure to write down your freedom date and the total amount you will be applying to your debts. Then, visit the Debt to Financial Freedom Calculator to see how long it will take to become financially free by investing your freed-up payments.