This method is all about finding additional ways to save and use that money to pay on one debt every day. It is money to earn from a side hustle, receive as a gift, yard sale, rebate, and etc. This money is made outside your normal budget. You would be jugging two strategies: the monthly budget and your side hustle budget.
With this method, you will be able to get wins very easily. You start by listing your debts from smallest to greatest. You take any additional money left over from your budget and attack the smallest debt first. You would pay the minimum balance on all other debts. Once this debt is paid off, use those funds to attack the next smallest debt.
This method requires you to look at the interest rates on each debt. Gather your bills and create a list of your highest interest rate to the lowest. With any additional income from your budget, you would pay off the highest interest rate first. When you have paid off this debt, take that payment and attack the next one on your list.
The purpose of this educational blog post is to provide you with research-based information to help you improve your finances. Every decision that we make affects our finances. Learn the financial strategies that will help create the life that you want. You will have to implement and improve on these skills every day. When we mess up, we have to make new decisions to improve. Practice makes us better, but not perfect.
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