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.
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2.
Make a budget , This means determining how much you can afford to pay toward your debt every month.
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'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.
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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.
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First is the debt snowball method, which focuses on the debt with the smallest balance first and then works its way up.
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The avalanche method, on the other hand, takes aim at the debt with the highest interest rate first.
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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.