How to pay down debt and take control of your financial life

Paying down debt is a stressful but rewarding process. There are many effective strategies for doing so and every situation calls for a different solution. Whether you have credit card debt, student loans, car payments or a mortgage, having a strategy in place is key to getting them paid off. Instead of following your friend’s advice, it’s important to always consider what’s in your best interest. More likely than not, your temperament will better suit one strategy over another, because everyone has a different mentality when it comes to achieving goals. If you’re trying to figure out the best debt repayment strategy for you, but don’t know where to start, consider the two most popular debt payoff methods: the snowball method and the avalanche method.

Personally, I utilize the snowball method by knocking off my smallest balance first, then working my way up to my largest balance. This method works best for my mentality because it promotes small wins from the start, and eventually bigger wins as time progresses. Furthermore, having a strategy in place motivates me to stay committed to paying off my debt and helps me build an effective budget and timeline to achieve it.  

You may have an idea of which method would work best for you, but it is important to remember that getting out of debt involves more work than simply deciding on a payoff strategy. It takes time, budgeting, and commitment. Plus, you must constantly manage and adapt your strategy to your ever changing life and financial goals. Choosing the snowball method, the avalanche method, or a combination of the two is a great place to start when building a debt repayment plan, and having a plan in place is the best way to get on track financially. Take control of your life by implementing a strategy appropriate for your situation. You’ll have a clearer picture of your future and may find that achieving your goals is closer than you think!