Even if you can find the extra money in your budget, how do you stay motivated to pay off debt every single month? How can you pay your debt off quickly so you don’t fall back into that trap?
I’m going to show you how adding just $25 a month to your debt payoff will save almost ten grand in interest and take years off your payments.
Playing some games with your debt payoff can save you tens of thousands and ditch your debt years ahead. Adding just $25 a month to your debt payoff will save you almost 8,400 and more than two years of payments.
The debt snowball method is more popular and for good reason, it’s going to save you the most money. Read on to learn how the debt snowball method works.
You list out all your debts, write out the amounts and interest rate for each. Then you arrange these from highest rate on top to the lowest rate.
You continue to make all your normal payments but you make any extra payments to the one or two debts on the top of your list, the ones charging the highest interest rate.
Here instead of listing your debts by interest rate, you list them by amount owed from lowest to highest. With this method, you make extra payments to the smallest debts first.
Because you’re paying off these more expensive debts faster, you’re saving money on that interest.