00:00You've realized the error of your debt-ridden days, and it's time to turn things around.
00:07But tackling debt can quickly feel like you're in over your head.
00:11Here are two major ways to go about it.
00:15The snowball method is one of the most recommended ways to ditch debt, since early wins can keep
00:20you motivated.
00:21Start by listing all your debts from lowest to highest, then pay as much as possible on
00:26the one with the smallest balance, while paying just the minimum on the others.
00:31Once you knock that debt out, move on to the next smallest debt, and so on.
00:35This snowballs until you're debt-free.
00:39The avalanche method is mathematically the best way to banish debt, especially if you
00:43have some high-interest accounts.
00:45Again, list out all your debts, but this time do highest to lowest interest rates, and then
00:50work on paying down the one with the highest interest rate while paying the minimum on
00:55the others.
00:56This way you can save hundreds, even thousands, on interest payments, potentially lowering
01:00the time it takes to pay off your debt by months.
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