CHAPTER 7 Get Out of Debt in 8 Years Including Your Mort our Mortgage
Techniques to pay down debt Consider the following strategies to pay down debt faster, while saving money in interest.
• Snowball method • Avalanche method • Debt consolidation loan • Balance transfer credit card
Snowball method
The snowball repayment method consists of listing all your debt balances and tackling them from smallest to largest. This method is designed to help you stay motivated through small wins. Because this strategy prioritizes debts by balance owed — not by interest rate — it is best suited for those who have multiple debts with similar interest rates.
Avalanche method
With the avalanche payoff strategy, you’ll focus on repaying debts based on their interest rates. This method focuses on paying down the account with the highest interest rate first and working your way down from there. The avalanche payoff strategy is ideal for those juggling multiple kinds of debt, such as credit card debt, auto loan debt or student loan debt. Although this debt repayment method is slower than the snowball method, you’ll save more on interest by getting rid
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