What are the Benefits of Paying Off Smaller Debts First?
When looking at debt repayment, paying off small balance debts first has the power to create quicker emotional wins for an individual. Since debt repayment, for most of us, is a marathon and not a sprint, it requires long-term commitment and stamina. Being able to celebrate quick wins along the way will help us stay encouraged to keep going.
Being able to experience small quick victories, especially for those who struggle with monthly cash flow or have a hard time sticking to long-term commitments, can be critical to help them stay out of debt. Once you pay off one of your smaller debt balances, roll that amount over to the next smallest balance to accelerate your debt payoff!
Today's tip brought to you by Mvelopes and Money4Life Coaching.