finicity

Different Debt Payoff Methods

The best debt pay off method includes having a written spending plan (budget) where every single dollar is assigned to a specific spending category and you’re committed to stick to those boundaries. Commitment to live within your means will make or break your debt repayment.

Choosing to pay smallest balance first versus highest interest rate debt should be considered in light of your cash flow and emotional stamina (do I need frequent encouragement or am I successful in sticking to long term goals?).

The debt roll down is a very common and effective strategy to eliminate debt fast. Once one debt is eliminated, instead of absorbing that payment amount into the monthly cash flow, it should be reassigned to the next debt payment, and then to the next one.

Today's tip brought to you by Mvelopes and Monday4Life Coaching.