DEBT IS A SERIOUS PROBLEM

 

But here are two methods that are commonly used to get out of debt:

 

The Snowball Method: This method states that you should pay off debts by the value of them, the lowest going first. We don't agree with this method as much as interest rates apply in our world, but we still have to offer this method to you. The only practical thing about this is that some bills are more important than others, such as mortage payments (repossession of home if not payed). 

 

The High Rate Method:We reccomend this method more than the other, mostly because this method takes interest rates as the priorty instead of value of balences. This method states that you should pay off debt starting with the bills with the highest interest rates, mostly because, interest grows fast. The only unpractical thing about this method is that, again, missing a serious payment can really hurt your credit. 

 

Here are little tips for getting out of small debt, such as 1-100 dollars: 

• Cut some of the extra unnecessary expenses out of your budget. (tips on creating one on our Budget page) Here's a good rule of thumb: If you can't afford, aviod it and don't buy it! 

• Pay more than just the minimum on your credit card (if you have one). This consolidates less debt being piled up. 

• Always pay your house and credit card bills first!