You may have accumulated debt from the holidays. And this can really cause headaches for anyone who is just coming off the pandemic. Nevertheless, you don’t need to panic anymore. Here are three ways to help you walk past the debts.
A snowball method is the first.
Start by paying off your lowest debt first, then make payments on the rest.
Once that portion of the debt is paid off, you should move on to the next smallest debt.
This repayments process should continue until all debt has been repaid.
Meanwhile, according to fingerlakes1, this has its problems. As interest accumulates on your biggest debts, the largest debt is left to last.
The avalanche method is another option available for you.
This works by having the person save enough money for each debt to be paid off by making the minimum payment.
All remaining funds will be applied to the debt with the highest interest rate after all minimum payments are made.
When you work toward eliminating your debt here, this method helps you reduce interest rates.
Lastly, we have the snowflaking method.
This means of debt payment involves you using money that you find unexpectedly to pay off debt.
For example, consequently, any money that comes in, such as rebates from Ibotta or sales from yard sales, will be applied to the debt.
This allows you to save small amounts of money that eventually add up to make a significant dent in your debt.