Do you find yourself buried in so much debt, you don’t know what to do? If you think you can still handle your situation, or if you simply want to deal with your debt by your sheer will alone, there are actually three kinds of debt repayment methods that you can try! You actually have three options: the debt-snowball method, the debt avalanche method, and the debt snowflake method.
Below are the three snow-based debt reduction strategies that will surely help you in the long run.
Find Out Which is the Best Repayment Plan For You
The Debt-Snowball Method
Simply said, this is paying your debts by prioritizing the small amounts first before paying off the big ones. The main advantage of using this strategy is the satisfaction that it brings you when you know that you are eliminating portions of your debt—albeit only starting in small amounts. The quote ‘slow and steady wins the race’ applies to this strategy. Other than that, the more debts you pay, the better it will reflect on your credit record.
Paying off all your small debts at once will eventually pave the way for you to eliminate the bigger-balanced debts. Concentrating on paying off those big amounts you owe will be easier. This method is also best for people who want quick results. This is very ideal for people who are able to function better when they are inspired. The psychological benefits of using this method is more than enough because you will feel like you just keep on winning with all the paid debts under your belt!
The Debt Snowflake Method
Unlike the debt-snowball method, the debt snowflake method is much more interesting in terms of execution. To illustrate this method in a short sentence, it’s basically paying off your debts in small and multiple frequencies until you eventually pay everything off. There are two specific ways you can accomplish this:
1. Spend less.
2. Find additional ways to earn income.
The debt-snowflake method requires a lifestyle change, it would seem, because that’s where the ‘snowflakes’ come in. If you’re interested in starting with this particular method, you would first have to list down all your debts. Next, you would have to list down all your sources of income, or your chances to save extra cash. Then, you would mix and match these with their corresponding debt—according to the interest rate or minimum payment. For instance, the biggest chunk of your salary will most likely go to the debt with the largest minimum payment or interest rate, and the money you save from skipping that regular trip to the coffee shop would go to that one small credit card debt account. The more extra money you’d be able to make, the more you’d be able to use to pay off your other debts.
The more debts you’re able to pay-off on a frequent basis, the earlier you’d find yourself debt-free.
The Debt Avalanche Method
This method is actually very simple to understand because it is very much like the debt-snowball method. The only difference is that instead of paying the debts with the lowest amounts, you focus instead on paying off the one with the highest amount. However, the only drawback to this payment method is that it would take a long time to finish. Hence, it is advisable to mix both the avalanche and the snowball method.
Now, whether these three types of repayment methods work for you or not, there might come a time when all your debts would overwhelm you and you’d want to give up. Don’t let that happen because there is still a way for you to get debt relief.
Enter Financial Rescue LLC, your most trusted debt settlement company! We’ll help you reach debt free status with our dependable, practical, and convenient debt settlement programs. This is like debt consolidation, but better. In fact, you can get your free consultation when you call 1-877-97-DEBTS. So don’t let your debt put you down but aim for that debt-free life you’ve always dreamed of! Call now!