There are some ways you can control debt, even beat it. You first need to understand different types of debt, how to prioritize debt payoff and then how to keep from becoming a debt statistic!
Think of debt as a tool, like a hammer. If you know how to use it, you can build something marvelous and useful. If you use it incorrectly, you can smash things up pretty badly.
If your debt is getting out of control, you might need to cut back spending for a few months until you pay down the burden but that doesn’t mean you must live like a miser for the rest of your life.
There are two strategies to pay off debt, the snowball and the avalanche. The avalanche method involves listing your debt from highest to lowest interest rate.
The snowball method involves listing your debts by amount owed, from smallest to largest. Any extra money goes to paying off the smaller debts first to knock them off the list.
Debt companies aren’t going to make it easy for you to get out from under their thumbs. The longer you rely on their money, the more interest you’ll end up paying.
You can spend months paying down your debt but it could all go out the window if you don’t have an emergency fund for unforeseen bills. This means saving at least between three and six months’ worth of expenses.