The holidays are a time for family and friends to gather and celebrate with dinner, drinks and exchanging gifts.
While it can be a lot of fun, it can also hurt your wallet quite a bit.
Here are 3 ways you can work to help eliminate debt you’ve acquired from the holidays
The first method is the snowball method.
This starts with paying off your lowest dent and making payments on all the other ones.
You then move onto paying off the next smallest debt after that one is gone.
You continue until all debt is repaid.
This has its issues though. Your bigger debts will continue to gain interest and your largest debt is left for last.
Another method is the avalanche method.
The way this one works is that the person saves enough money to make the minimum payment on each debt.
Remaining funds after all minimum payments are made will go to the highest interest rate debt.
This method helps with interest rates as you work toward your debt elimination.
Finally, there’s the snowflaking method.
This one allows for unexpectedly discovered money to go towards any debt.
This means any extra money to pop up, like rebates from Ibotta or sales from a yard sale, would go toward the debt.
This makes it so the little bits of savings eventually add up and really put a dent into your debt.
Any of these methods will help steer you in the right direction when it comes to getting your debt under control.
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