3 Steps , To Overcome Debt and , Regain Control of Your Finances.
'The Independent' recently offered readers some advice on how to get holiday debt under control. , Here are 3 things they suggested:.
'The Independent' recently offered readers some advice on how to get holiday debt under control. , Here are 3 things they suggested:.
1. Determine what you owe , Note the total of each debt, the minimum payment,
the interest rate and the monthly due date. .
2. Make a budget , This means determining how much you can
afford to pay toward your debt every month. .
'The Independent' recommends a 50/30/20
framework. This splits up your monthly income
into 50% toward necessities, 30% for wants
and 20% for paying off your debt or saving. .
That just gives somebody a baseline to get
a sense of, ‘What do I normally spend?
What sort of cash flow should I have to
start paying down some of this debt?
Are there things that I’m overspending
on that I should be able to reduce a little
bit to free up some cash to attack the debt?', Jeff McDermott, certified financial planner,
via 'The Independent.
That just gives somebody a baseline to get
a sense of, ‘What do I normally spend?
What sort of cash flow should I have to
start paying down some of this debt?
Are there things that I’m overspending
on that I should be able to reduce a little
bit to free up some cash to attack the debt?', Jeff McDermott, certified financial planner,
via 'The Independent.
3. Find a payment strategy that fits, 'The Independent' offers two possible
approaches to tackling multiple debts. .
First is the debt snowball method,
which focuses on the debt with the smallest
balance first and then works its way up. .
The avalanche method, on the other hand, takes aim at the debt with the highest interest rate first. .
The avalanche, where you attack
the highest-interest rate debt first,
usually makes the most logical sense.
It’s the best from a math standpoint, Jeff McDermott, certified financial planner,
via 'The Independent.
Taking any of these steps can
help you to overcome your debt
and regain control of your finances.