9/25/2023 0 Comments Clean up your finances![]() ![]() ![]() This method may increase the interest you pay, so make sure you have all of the facts before deciding on this method. Debt consolidation method: Pay down high-interest debts by consolidating them into one or more lower-interest debts.Using the debt avalanche method will save you the most in interest payments. Debt Avalanche Method- This debt reduction strategy involves making the minimum payment on all your debt and then using any remaining money earmarked for your obligations to pay the bill with the highest interest rate. ![]() Focus all the additional money you put toward debt reduction on your lowest debt balance while paying minimums on the remaining debts. Start by paying off one debt first, then move to the next lowest balance debt. You’ll make minimum payments on the rest as you work toward snowballing the smallest debt. This strategy also helps change spending habits because you use all your additional money toward debt reduction. Debt Snowball method- This debt reduction strategy has you pay off your debts by starting with the smallest to the largest regardless of the interest rate.Once you have your debt inventory, consider using one of these debt reduction strategies: Don’t forget to include overdue small bills, as any unpaid debt obligation can hinder your finances. Write down each account, the unpaid balance, and the monthly payment required. Take inventory of your debts this spring, so you understand how much you owe. However, your budget shouldn’t be so restrictive that it doesn’t bring you joy remember to budget for things you desire too! 2. Your monthly budget may help you work toward your financial goals and can be revised as your expenses change so you can track your spending. Here are ten ways to help you clean up your finances by cleaning out what isn’t working in your financial situation. Now is a great time to look at your finances so you can work toward financial independence. While many are organizing their closets and cleaning out drawers and garages, use springtime to Spring clean your finances. ![]()
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