7 Strategies for

Accelerated Debt Elimination

“As a single mom, I had accumulated substantial amount of debt over the last year and
I did not know how to tackle it. …I went from not knowing how to tackle my debts to
having an abundance of solutions to choose from to improve my finances. And with
choices, came power and freedom. Thank you Hadriana for that freedom! “
Soledad S

So many families want to be debt free but very few really know how to achieve that
lofty goal. Many assume that they just have to grind it out… make the payments,
do without and sacrifice for years and years under the burden of debt and money
worries.

It was not that long ago that I was where you are today—looking for answers and
not knowing where to begin. Well, thanks to the work that I have done for my own
debt recovery and the work I continue to do with clients, I can confidently say that
this a good place to start.

The Debt Elimination Strategies that follow are part of a proven system for
eliminating debt.
Putting them into practice will help put a stop to the actions that lead you further

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1. Debt Snowball:
This tried and true method for debt reduction considers all of your debt. The idea is to
attack the debt which has the smallest balance with any extra money you have.
For example, if you are carrying balances on 5 credit cards, you would make the minimum
payments on the 4 cards with the largest balances and apply the minimum + extra to that
smallest balance.
This approach works best for those who gain motivation by seeing balances drop
quickly

2. Debt Avalanche:
Similar to the debt snowball, this method also considers all you debt. The difference here
is that the most expensive debt, i.e the ones with the highest interest rates get the benefit
of the extra payments.
This approach works best for anyone who wants to ensure that they pay as little as
possible in interest costs to carry and resolve their debt situation.
You can use this simple chart to gather the necessary details about your debt and
determine which approach you want to employ.
Debt Snowball / Debt Avalanche Strategy Plan
(once you determine which approach you wish to use, assign a priority order to each entry)
TYPE (credit card, mortgage, INTEREST MINIMUM Priority
line of credit, etc) LIMIT BALANCE RATE PAYMENT (2%) payment order

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3. Extra Shift:
Whether you use a debt avalanche or snowball, it is always a great idea to find some extra
money to help accelerate the debt paydown. One way to do this is by taking on an extra
shift or two. The intention is for the money you make from that extra work to be directed
exclusively to your debt elimination. This could also be done if you have a revenue
generating side hustle.
This approach works best for people who have some flexibility to take on extra work
either from an employer or a second job.
You can quickly estimate the take-home value of a single shift as describer below:

Average number of shifts per pay period: ___#A___

Average take home pay per pay period: ____$B____

4. Redirect an expense:
A quick check of your spending can usually identify some expenses that you could choose
to live without. Regardless of the actual dollar value of the expense you can commit to
eliminating that expense and using the money towards your debt elimination instead.
This could be done with a single expense or multiple and can be done for a finite period
or until the debts are all cleared away.

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This works best for families who have optional expenses and can commit to going
without them for a period of time.

OPTIONAL EXPENSES

Expense Cost

5. Credit Swipe freeze:

Eliminating the convenience of swiping will help to quickly get your debt under control
and then reduced. Implementing a swipe freeze means paying for your purchases with
readily available cash. That would be either using actual cash as payment or using your
debit card connected to your chequing account. The idea is that you stop increasing your
debt load and retrain your thinking away from swiping simply because it is the easiest
thing to do. It will also help you to think long and hard before making a purchase as the
effect of every purchase is immediately felt.
This approach is best implemented when cashflow management is not a serious
problem.

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6. Transfer to lower interest:
With this strategy you create your own debt consolidation plan. The intention is to avoid
the compounding effect of high interest. As you pay down balances on your low interest
debt instruments you can transfer your higher interest balances to that lower interest card
and continue to pay your balances down.
This method works well in conjunction with other strategies and revolving credit
accounts.

7. Use savings:
With savings accounts making very little interest it may work in your favour to redirect any
accumulated, liquid savings towards debt reduction. Compare your savings and debt
interest rates. If the debt is costing you far more than the savings are making, then
consider putting a portion of your savings towards the elimination of one or more debt
balances. Once that is done, continue making the payments but instead direct them
towards rebuilding your savings. This approach will work best when full balances can be
eliminated by the savings.

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 MEET HADRIANA
I am a wife and a mother and I have seriously struggled financially! In fact, Iwas a
financial services professional, giving other people financial advice and my personal
finances, my spending and debt, were an absolute mess (*gasp*)!
I know what it’s like to have spending and debt get so far out of hand that you don’t
know how you can ever begin to recover. It was not until life dealt me a few tough
lessons that I made the decision that enough was enough. Something had to change.
Whatever circumstance has brought you to this guide know that I’ve been there. The
tips that I share are what has helped me and my clients to create healthy spending
habits. I got myself out and now I am helping my clients to do the same.

“After meeting with her I am so excited about my financial future and have a concrete
plan for achieving my financial goals!… If you are making money and have no idea
where it is going, or have goals for your future but have no idea where to start go see
Hadriana Leo – Money Navigator.” Andrea S
To book your own 15-minute personal assessment of your current financial situation
and how I can help you quit bad spending and stop increasing debt,
go to https://bit.ly/Ready-Fit.

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