A recent survey revealed that 44% of 18- to 34-year-olds feel like they are drowning in debt. One financial coach recommends taking any small step toward debt repayment as a way of putting yourself on the right track. First, look at your purchasing habits to see where you can cut back. You need to pay at least the minimum on all debts, but target one debt to try to pay off entirely. You can choose the smallest debt (“snowball” method) or the one with the highest interest rate (“avalanche” method). Another option for those with credit card debt is to transfer an outstanding balance to a new card that offers a low introductory rate.
Key Takeaways:
- Don’t try to pay them all off at the same time. Work on one at a time.
- Do something about your debt even if it’s small steps.
- Watch out for interest rates and make sure you aren’t just paying off that.
“Her point is that your debt payoff journey can start with little wins, such as applying a small savings you have to your credit card balance or cutting out costs to find extra money.”
Read more: https://www.cnbc.com/select/drowning-in-debt-first-step/
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