SMARTER MONEY PLANNING
3 Strategies to Pay-Off Credit Card Debit 
Written by Jenn Leydon on October 6th  2018
When you start talking to people and learning about their challenges, it becomes apparent rather quickly that they either need a lot of help planning and meeting their goals, a nudge to get them going in the right direction or something in the middle.  For those that need just a nudge, I'd like to offer the three tried and true strategies of paying down your credit card debt. 

The first is called the snowball method. The snowball method steps are as follows:

 *Pay the minimum monthly payment on all of your debts.

 *Then, put the rest of your budgeted payoff money to the debt with the smallest balance.

*Once that debt is paid off, put that monthly payment and any budgeted payoff money to your next-smallest debt. Rinse and Repeat.

The theory  is that you'll get small wins up front. You pay off your smallest balances very quickly. So, by the time you start focusing on the debt with the largest balance, you’ll be putting large amounts of money toward it monthly and it won't be so intimidating.  

The next one is the avalanche method and is very similar to the snowball method.
The avalanche method steps are as follows:

*Order your debt interest rates from highest to lowest

*Pay the minimum payments on all your debts. 

*Then, put the rest of your budgeted payoff money to the debt with the highest balance. Rinse and Repeat.

As you pay off each debt, its minimum payment gets added to the monthly payment for the next debt. Again, by the time you get to your last debt, you’re putting a lot of money toward the balance.

The difference with the debt avalanche is that you order debts not by their balance, but by their interest rate. You start by paying off the highest interest rate debt first. Then, you work your way through to the lowest interest rate debt on your list.

Lastly, is the no-name method and is a more personal method.
The no-name method steps are as follows:

*Order your debt based on the ones you hate most to least

*Pay the minimum payments on all your debts.

*Then, put the rest of your budgeted payoff money to the debt you hate the most.  Rinse and Repeat.

The theory is you will stay focused on getting the debt that makes you cringe when you think of it, paid off as soon as you can.  As you pay off each debt, its payment gets added to the monthly payment for the next debt. Again, by the time you get to your last debt, you’re putting a lot of money toward the balance.

Given these three strategies, each situation is still unique and complex especially if cash flow is a challenge. If after implementing one of these strategies you are still having trouble, click on X for a free strategy session. 

Jenn Leydon


Jenn Leydon helps small business and professionals reach their financial goals through strategic planning.  She is an expert at helping people align their values with their money and making things super simple to understand. If you're interested in creating a strategic financial plan based on what is most important to you then definitely reach out and request a free strategy session today.
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