Learn how you can protect your loved ones financial abuse and how to minimize the damage if it happens! Financial Scams and Protecting Your Family A few years ago, my husband’s nana had sent over money to a scammer pretending to be him. She had thought he needed help and so she generously sent it […]
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If you’re sick and tired of being in debt, find out the 5 steps you need to take get rid of it. Learn whether the debt snowball or avalanche is the fastest way to pay off your debts once and for all.
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Today we’re at #4 of the top 10 episodes of the Couple Money Podcast!
Getting Rid of Your Debt Faster
If you’re looking at getting rid of your debt, here are five steps to take you through it.
- Know How Deep Your Debt Is
- Review Debt Methods as a Couple
- Choose the Method that is Easiest to Keep
- Build Up Your Debt Payments
- Make It Automatic
Pay Debt Off Faster with Debt Snowball or Avalanche?
Two of the most popular methods of getting out of debt is using a debt snowball and avalanche.
Dave Ramsey is most associated with the debt snowball. Once you are current on your bills and your have a small emergency fund set aside, you list all of your non-mortgage debts from smallest to the largest amounts.
The debt avalanche focuses on interest rate where you pay them down from highest to lowest.
Use a method that works well with your spending habits. Highest interest rate method is the financially sound decision and lowest debt is the psychologically empowering decision.
If you’re looking for more resources on getting rid of your debt faster, here are some to check out.
- Should You Use Peer to Peer Loans to Get Out of Debt?
- Make Your Debt Payments Automatic
- How to Build Up Your Debt Payments
I also highly recommend Dave’s Ramsey’s Total Money Makeover. It’s the perfect mix between head and heart that will keep you motivated while you get out of debt. You can usually borrow a copy from yuor local library or you can get it on sale.