R
Renee P.
I am paying off my debt with Money Management International. It was overwhelming at first. I can now see a light at the end of the tunnel.
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I am paying off my debt with Money Management International. It was overwhelming at first. I can now see a light at the end of the tunnel.
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Great info
The debt snowball effect is when you list all your debt, take the smallest amount first, add some extra to it (whatever you can afford in your budget), pay the minimum on the retaining debt until you pay the smallest off, then roll that minimum payment into the next minimum until you have snowballed all your debt. If you want to learn more about it, go to Dave Ramsey.com or pick him up on YouTube and he explains how it works in his videos.
I agree that the snowball effect is the best way for paying off debt. If you pay your minimum one one card/loan and an excessive amount on another, once you pay off the second, add that amount to the one you were paying the minimum on.
We always pay extra on our mortgage ,car and credit card payments ! That keeps your credit up and gets debt paid down sooner. Also always follow your budget and eliminate any unnecessary spending.
I did the same thing, and it feels so good when you have a huge thing like a car or mortgage paid off. Once this happens, it feels like there is light at the end of the tunnel!
Yes, paying extra will help your credit score. The lower your utilization, the higher your score. It accounts for one of the highest percentages of your credit score. Keep chipping away at it, don't pay late and don't run the card back up. Only charge what you can afford.