Debt Consolidation/2 Methods to Pay Off Debt
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Credit card debts among U.S Americans are now over $1 TRILLION!!
The average person in the U.S pays over $1000 in interest each year.
Debt consolidation is a great way to get out of debt by paying minimal to no interest on your debt.
There are two ways to consolidate your debt.
1. Fixed-rate debt consolidation loan.
(Just be becare and run your numbers if it makes sense to you. Focus on if it’ll save you money in the long run).
2. Opening up a credit card with 0% APR Balance Transfer.
(Look at a few different credit cards and compare transfer fees)
When it comes to paying off debt, there are 2 Methods to Pay Off Debt
1. Avalanche Method – This is where you start by focusing on paying the debt with the HIGHEST INTEREST first, while making the minimum payments on the rest. Once the highest interest rate debt has been paid off, you move on to the next debt payment with the highest interest rate.
2. Snowball Method – This is where you focus on paying debt with the SMALLEST AMOUNT first while making the minimum payments on the rest. Once you have paid off that debt, you use that amount you were paying for that debt, and apply it towards the next smallest debt.
Debt Consolidation Calculator:
https://bit.ly/3cVfSNI
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???Video Timestamp ???
0:00 – Debt Consolidation/2 Methods to Pay Off Debt
0:45 – Why paying off Debt is Important
2:00 – What is Debt Consolidation?
4:27 – 2 Debt Payoff Methods
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Reference
https://www.nerdwallet.com/article/finance/consolidate-debt
https://money.usnews.com/money/personal-finance/debt/articles/easy-ways-to-pay-off-debt
https://www.investopedia.com/ask/answers/111714/when-balance-transfer-good-idea-paying-debt.asp
https://www.cnbc.com/2020/01/27/how-to-pay-off-debt.html
https://www.moneycrashers.com/reasons-get-out-debt/
https://www.nerdwallet.com/article/finance/what-is-a-debt-snowball
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*Disclaimer: This is designed to provide general information AND entertainment. It is not intended to serve as professional legal, tax, or other financial advice. For individual situations, consult with a professional, attorney, CPA, and/or other advisor regarding your specific situation.
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Great information but he is saying "SO" too much.
I wanna be your friend:()£
Love it! Good habits built early can help make behavioral changes that will lead for a happier life. Couldn't agree more with all the recs 🙂
I wasn’t aware of the different methods you can try out in regards to debt. Super helpful! Thank you ?
Great info! Most people suffer because they don’t know their options, this is such a great breakdown of effective strategies.
Even though avalanche is a better way to pay off debt to avoid paying more interest but most people will have to do the snowball method. Not as overwhelming and you can see your progress fairly quickly.