The debt snowball method is a way to eliminate your debt, and it follows a similar pattern. You pay off your small credit obligations first, and then you attack the bigger ones.
You not overthink things by calculating interest charges. Instead, look for small victories by eliminating the smallest debt first.
The focus here is to get rid of all debt except for the mortgage. We did pretty good with credit card debt, but we got hung up with Wendi’s student loans.
We have helped family, friends, and strangers dealing with financial hardships. We have had to pay for a new roof, replace two cars and all of this on top of the normal expenses of life.
We budget the entire year, so we set aside money for our trips months before we depart. While we still have a student loan and a mortgage, we have no other debt.
1. Stick with the plan: If you have $1,000 in payments each month, make sure you pay at least that much when you eliminate a $100 credit card payment.
Attack your debt or put it in your emergency fund. If you get a new job and make more money, then put more money toward getting out of debt.
You will never get out of debt or gain control over your finances if you continue to go further into debt. Be sure to do a budget every month and follow it. Avoid new debt to the best of your ability.