GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re able to read more about oureditorial guidelinesand our products and servicesreview methodology.
Sure, those stories are inspiring, but what can you do right now?
These are some of the things that can help if you cant see a way out of debt.
Get out an actual physical piece of paper and write down each source of debt, she added.
However, Kullberg made it simple and outlined a straightforward process you’ve got the option to use.
Total up all the debts so you’re able to see exactly what youre dealing with.
Order the debts you wrote down from highest interest rate to lowest.
The debt with the highest rate is where you will focus first.
Once you pay off that debt, you move on to the next, she added.
Make room in your budget for extra debt payments and readjust your repayment timeline.
The faster you pay off your debt, the less you spend on interest.
Prioritizing high-interest debt is a part of the debt avalanche method.
Paying off high-interest debt first will minimize how much you pay in the long run.
The idea behind the debt snowball is that you remove some financial obligations from your plate.
It can serve as motivation since small loans will disappear from your debt mountain.
However, you will pay less interest in your lifetime with the debt avalanche approach.
It is okay to acknowledge this since debt often requires a long-term view.
Daniel Shore, money expert atLendingClub, explained the importance of having a long-term perspective.
Getting out of debt is not an overnight fix.
Write down all debts, including amounts, interest rates and minimum payments, Shore said.
This provides a clear picture of what needs to be tackled and when, he added.
A long-term view also involves tightening your budget.
Its important to assess how you got into debt and minimize expenses when you might.
For instance, you may find an unused monthly subscription on your credit card statement.
People can turn saving money into a fun challenge that allows them to get out of debt sooner.
More From GOBankingRates
Share This Article:
