How to manage debt effectively

[Augusta]

I have a few credit cards and a loan, and I'm finding it hard to keep up with payments. What's the best way to tackle this? Do I focus on paying off the smallest debt first or the one with the highest interest rate?

 

[gwolf666]

In my experience, when faced with multiple debts simultaneously, the first step is to get organized and have clarity on the amounts, interest rates, and payment due dates. Personally, I believe there are two helpful approaches: the "snowball" method, which involves paying off the smallest debt first to build motivation, and the "avalanche" method, which focuses on paying off the debt with the highest interest to save money in the long run. Interestingly, both work, but the choice depends on your emotional and financial situation. For me, the most important thing is that it's not just about paying off debts, but also about preventing new debts from accumulating and adjusting your budget to free up cash flow. Ultimately, I think the key is to choose a method, commit to it, and maintain discipline until you regain financial control.

 

[Augusta]

In my experience, when faced with multiple debts simultaneously, the first step is to get organized and have clarity on the amounts, interest rates, and payment due dates. Personally, I believe there are two helpful approaches: the "snowball" method, which involves paying off the smallest debt first to build motivation, and the "avalanche" method, which focuses on paying off the debt with the highest interest to save money in the long run. Interestingly, both work, but the choice depends on your emotional and financial situation. For me, the most important thing is that it's not just about paying off debts, but also about preventing new debts from accumulating and adjusting your budget to free up cash flow. Ultimately, I think the key is to choose a method, commit to it, and maintain discipline until you regain financial control.

Yeah I think that a good idea. You just have to set things right first. You have to get clear understanding of the details of the debt so that you can work towards managing it..

 

[eLdavis]

I think it would be best to clear up debts that comes with high interest first before you start to focus on other ones.

 

[Springtime]

Check out the repayment deadline and the interest rate. Make sure to pay off on time and debts which charge higher interest rate.

 

[Augusta]

I think it would be best to clear up debts that comes with high interest first before you start to focus on other ones.

Yeah that's right, it is what I love to do . You can easily make repayment by paying first the ones that have high interest to lessen things for you.