Snowball, avalanche and consolidation; no, we’re not ruminating on winter weather - we’re talking debt repayment strategies!
If you are struggling with multiple debts it can be overwhelming – and hard to know where to start when it comes to paying them off. What’s worse, they can soon spiral further if you don’t act fast 😮
There are three main strategies for debt payment; snowball, avalanche and consolidation - with upsides and downsides to each. Over this series, we’ll explore each three in detail - helping you decide which is best for you. Remember, the sooner you start paying off those debts, the sooner you’ll be in the black 😎
Before getting started
Firstly, you’ll need to make a list of all the debts you have. Note down the sum total for each of them, the minimum payment (date and amount), and, with at least one of these methods, what the interest rates are too. Unfortunately, this is far easier said than done, as most banks make it extremely difficult to find this information. Luckily, Incredible does all the hard work for you - making it easier than ever to manage your debt!
We then recommend creating a monthly budget of your income and expenses so you know how much surplus cash you have each month to put towards your debts. Again, we can help you with that 😉
Now it’s time to decide which strategy is the one for you! See you in the next blog to find out more…