How well do you manage your finances? Are you a big saver or a big spender? Maybe you’re like me and do a little of both, which is absolutely fine. However, it is very important to make wise financial decisions to help you become financially free. In this episode, I will share with you some of the things I do to keep my finances in check, and how you can make better decisions financially.
Below is a snippet from my blog titled, “Getting Out Of Debt”.
These are two methods that I discuss in my podcast to help you get out of debt.
With the Debt Snowball Method, you will see progress in eliminating your debt quicker. This happens because in this method, your goal is to pay off your debt with the lowest balance first, while still making minimum payments on your other balances. For example, if you have 2 credit cards, you will pay more than the minimum balance on the card with the lowest balance, while still paying the minimum balance on the card with the highest balance. Once you have fully paid off the card with the lowest balance, you will then begin doing the same on your next lowest balance.
With the Debt Avalanche Method, your goal is to pay off the debt with the highest interest rate first. This may be cost efficient for some because you will pay a lot less in interest by tackling the account that has the highest interest rate, and as we all know interest adds up overtime. Once you have paid off the account with the highest interest rate, you will continue on to the next highest interest rate until you have paid all off your debt off.
Be sure to check out “Class In Session W/ L. K. Hodge: Money Matters” by clicking one of the links below