moonchild
VIP Contributor
In this article, I will be talking to you about two strategies that can help you to get out of debt easily without making major changes to your life, there are the Debt Snowball Method and also Debt Avalanche Method, let's roll.
Debt Snowball Method
The debt snowball method is a popular debt reduction strategy that involves paying off your debts in order of smallest to largest, regardless of the interest rate. the idea behind this method is to gain momentum and motivation by quickly paying off smaller debts, which can give you the confidence and momentum to tackle larger debts.
Step 1: List all of your debts from smallest to largest.
Step 2: Make the minimum payments on all of your debts except the smallest one.
Step 3: Put as much extra money as you can afford toward paying off the smallest debt.
Step 4: Once the smallest debt is paid off, use the money you were paying toward it to pay off the next smallest debt, and so on.
The Debt Avalanche Method
The debt avalanche method is similar to the debt snowball method, but instead of paying off debts in order of smallest to largest, you pay them off in order of highest interest rate to lowest interest rate. This method can save you money in interest charges over time.
Step 1: List all of your debts from highest interest rate to lowest interest rate.
Step 2: Make the minimum payments on all of your debts except the one with the highest interest rate.
Step 3: Put as much extra money as you can afford toward paying off the debt with the highest interest rate.
Step 4: Once the debt with the highest interest rate is paid off, use the money you were paying toward it to pay off the next debt with the highest interest rate, and so on.
You should one that resonates with you and then get to work in reducing your debt load, leave a feedback if you enjoy the article.
Debt Snowball Method
The debt snowball method is a popular debt reduction strategy that involves paying off your debts in order of smallest to largest, regardless of the interest rate. the idea behind this method is to gain momentum and motivation by quickly paying off smaller debts, which can give you the confidence and momentum to tackle larger debts.
Step 1: List all of your debts from smallest to largest.
Step 2: Make the minimum payments on all of your debts except the smallest one.
Step 3: Put as much extra money as you can afford toward paying off the smallest debt.
Step 4: Once the smallest debt is paid off, use the money you were paying toward it to pay off the next smallest debt, and so on.
The Debt Avalanche Method
The debt avalanche method is similar to the debt snowball method, but instead of paying off debts in order of smallest to largest, you pay them off in order of highest interest rate to lowest interest rate. This method can save you money in interest charges over time.
Step 1: List all of your debts from highest interest rate to lowest interest rate.
Step 2: Make the minimum payments on all of your debts except the one with the highest interest rate.
Step 3: Put as much extra money as you can afford toward paying off the debt with the highest interest rate.
Step 4: Once the debt with the highest interest rate is paid off, use the money you were paying toward it to pay off the next debt with the highest interest rate, and so on.
You should one that resonates with you and then get to work in reducing your debt load, leave a feedback if you enjoy the article.
