Search
Library
Log in
Watch fullscreen
4 months ago

3 Steps To Overcome Debt and Regain Control of Your Finances

Wibbitz Top Stories
Wibbitz Top Stories
3 Steps , To Overcome Debt and , Regain Control of Your Finances.
'The Independent' recently offered readers some advice on how to get holiday debt under control. , Here are 3 things they suggested:.
'The Independent' recently offered readers some advice on how to get holiday debt under control. , Here are 3 things they suggested:.
1. Determine what you owe , Note the total of each debt, the minimum payment,
the interest rate and the monthly due date. .
2. Make a budget , This means determining how much you can
afford to pay toward your debt every month. .
'The Independent' recommends a 50/30/20
framework. This splits up your monthly income
into 50% toward necessities, 30% for wants
and 20% for paying off your debt or saving. .
That just gives somebody a baseline to get
a sense of, ‘What do I normally spend?
What sort of cash flow should I have to
start paying down some of this debt?
Are there things that I’m overspending
on that I should be able to reduce a little
bit to free up some cash to attack the debt?', Jeff McDermott, certified financial planner,
via 'The Independent.
That just gives somebody a baseline to get
a sense of, ‘What do I normally spend?
What sort of cash flow should I have to
start paying down some of this debt?
Are there things that I’m overspending
on that I should be able to reduce a little
bit to free up some cash to attack the debt?', Jeff McDermott, certified financial planner,
via 'The Independent.
3. Find a payment strategy that fits, 'The Independent' offers two possible
approaches to tackling multiple debts. .
First is the debt snowball method,
which focuses on the debt with the smallest
balance first and then works its way up. .
The avalanche method, on the other hand, takes aim at the debt with the highest interest rate first. .
The avalanche, where you attack
the highest-interest rate debt first,
usually makes the most logical sense.
It’s the best from a math standpoint, Jeff McDermott, certified financial planner,
via 'The Independent.
Taking any of these steps can
help you to overcome your debt
and regain control of your finances.

Browse more videos

Browse more videos