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Credit card debt alone has reportedly surged to $1.1 trillion, or $6,500 per cardholder.
Its very easy to go into debt.
Its as common as the common cold.
Here they are,as explained by the Rich & Regular duo.
The psychology behind it is all about small wins, motivation, momentum, Kiersten said.
The purpose is to get you going, get the party started.
With the snowball method, you pay off the debt with the smallest balance first.
In this case, Tasha should pay off credit card A first, which has the smallest balance.
There is a lot of data that says this has the greatest impact for sustainable success, Julien said.
Its a lot, emotionally, to look at that $20,000, regardless of how much you earn.
The snowball method is all about simple math putting your debt balances in order, from least to greatest.
The upside is you could quickly improve your credit score and feel good about making progress.
In Tashas case, this would be credit card B, with the 22% APR.
In this method, youre motivated by the money youre saving, Kiersten added.
It may take longer to see tangible progress, but theres a prize at the end of the rainbow.
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