What is the best way to pay down debt? Americans are in tremendous amounts of debt (think over 400 billion on just credit cards alone)! Not only is this debt keeping folks from reaching their financial goals, but it’s also taking a toll on the mental health of borrowers. Knowing the best strategy to get out of this debt is a big deal and could be the difference between living paycheck to paycheck or achieving financial freedom. Listen as we cover both approaches so you can decide which is better for you: the debt snowball (popularized by Dave Ramsey) and the debt avalanche (also known as debt stacking).
Additional links from this episode:
- How accurate was your white Christmas forecast?
- Check out Debt Snowball vs. Debt avalanche methods
- If you’ve identified the approach that should work for you but you’re not getting anywhere, then be sure to check out the National Foundation for Credit Counseling, or NFCC for additional help. It’s always great to have an additional set of eyes on your situation to help you create a plan to pay down your debt.
- However, even after giving it your all and focusing like crazy, you may not have even put a dent in your debt levels if your interest rates are really high- that’s when a refinance might be a good option for you. If that’s the case, then be sure to check out Credible or SoFi where you can easily compare the best loan options that are available to you.
During this episode we enjoyed a Maple Vanilla Copra Kai by Southern Grist Brewing. And as we’re looking forward to kicking things off with a bang in 2021, we could really use your help to spread the word- let friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to spread the word to get more people doing smart things with their money in these difficult times!
Merry Christmas and best friends out!