January 22, 2021

Debt can really make you feel like you are under water at times especially when …


Debt can really make you feel like you are under water at times especially when dealing with multiple lenders or high balances. 🤬

Both of these strategies of paying off your debt are great and here’s a detailed breakdown on both. 🗒

— Debt Snowball — ❄️ Example: Let’s say you have 4 credit cards. Make sure to only pay the minimum on all cards EXCEPT the lowest balance. On this card you will pay the minimum ($25) + extra money in your budget ($50) (total: $75). Once that card is paid off, you take the next card’s minimum ($30) + extra ($50) PLUS last card minimum ($25) for a total of ($105) monthly.

— Debt Avalanche — ⛄️ This strategy is very similar but you start with the card that has the highest interest rate and keep rolling the extra money to the next card saving you money in interest over the period of paying of the debt. ⠀
Both, generally, pay off the debt around the same time. The key here is to not give up or add to your debt in the process. 🔑

What do you guys think about these two strategies? 🤔

—— Follow: @spacecitymoney for more ——

⚠️ I am not a financial advisor, the information provided is for educational and/or entertainment purposes only. ⚠️

#SpaceCityMoney #personalfinance #finance #debt #debtfree #debtsnowball #debtavalanche #credit #moneysavingtips #financialfreedom #creditcard #creditscore



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