Paying off all your debt fast by leveraging the community is an unusual way. With about $38k debt owed by American on average, debt is putting us behind and down. Certainly, they are many ways to pay off debt. Yet, leveraging the power of the community is a very effective way to be debt free if done with people who have your best interest in mind. In this article, you will learn what it takes to make it happen.
Takeaways: Paying off all your debt fast by leveraging the community
When people come together there is no limit to what they can achieve. Yet, our society has conditioned us to always fight for ourselves. As a result, when we face challenges, we tend to look toward one direction in search of a solution. But a community-oriented approach can help us be debt free fast. So, how can we do that?
Family: If your Dad, mom, sister, brothers, cousins, aunt, grandparents, etc… chip in maybe $50 per month then you & your boyfriend/husband add yours. You will find yourself with more than enough money for your minimum monthly payment. Notwithstanding, The motivation here is to help all family members quickly get out of debt and build sustainable wealth. But if you think $50 per person is high think of how much is spent per month eating out, traveling, coffee, or drinks. It is all about the interest of the family and relatives. A strong family means happy people.
Credit Card Rewards: every time you use it you are accumulating points. Again you can turn out and maximize those options by asking your roommate/family every month to do purchases and accumulate rewards for all with a single card. The credit reward is then redeemed and put towards debt payment. You organize it as a circle with each member of the community waiting for their turn.
Saving accounts: Some savings account can actually yield very high-interest rate if you keep in a certain limit for a minimum duration. For example, Goldman Sack saving account interest rate is 2,25%. Then imagine if you have $50k per month that’s an interesting $1125 per month. The principle here anew with your close circle is to open an account with at least the minimum amount require and use the interest generated to put towards debt and rotate that operation for every member of the circle.
Lending Circles: In some culture, lending circles are a way of life. Every person goes through an initiation phase from childhood. More than an association of individuals, they stand by yourself each time you need them. The bound enables them to get access to financial services at an unbeatable interest rate. Nobody is left behind and aside.
In conclusion, this method is a very fast and reliable way to be debt free. But It requires focus and people who share common goals and values.