Having no debt is extremely liberating. You feel more in control with the money you earn and your finances in general without the menace of debt hovering over your shoulders.
Unfortunately, some of us are, or will be, forced in a situation where the solution might just be to take on some loans.
Fear not though, as this blog and the very entertaining and instructive video we show below will be of utmost help.
You Have To Watch This Two Cents Video
The informative and enjoyable video below gives more information on how to actually do both methods.
The Fastest Way To Pay Debt
There are two strategies that you can use to pay off your debt, which you can learn about in the video above.
The Avalanche Method of paying debt is the most mathematical strategy there is. And all you have to do is pay your debt starting from the biggest one. Following this method will be most efficient.
However, most people who follow the Avalanche Method usually fails halfway through because they don’t see sufficient progress.
And that’s where the most suggested method, Snowball, comes in.
With the Snowball Method, you pay your debt starting from the lowest amount, and make your way until you pay off the biggest debt.
The snowball is great as it let’s you celebrate the little wins, which in turn encourages you to pay off the next debt in the order.
Sure, some businesses can make use of “good debt”. However, for personal finance, it would definitely be best to not have any debt at all.
As suggested, follow the Snowball Method, and coupled with hard work, you’ll be debt free in no time! And you’ll definitely thank yourself for it!
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