How to Both Pay Off Debt And Save More
December 31, 2020
- Choose a payoff method, such as:
- Avalanche: Pay off your credit card with highest interest rate first while still making minimum payments on other cards. Then pay off the next highest interest rate card, and so on, until you have no debt left.
- Snowball: Make the minimum payment on each credit card while putting extra funds toward the card with the smallest balance, and then the card with the next smallest balance, and so on until you’ve paid off all debt.
- Consolidate your debt into a new, lower-interest-rate loan
- If you have a good credit score this may be an option to consider since it could save you money on interest. For more information about credit scores, read our previous blog on the topic: How to Improve Your Credit Score.
Tags: Money Management, Tips and Tricks, Savings