Why Not Try a Debt Snowball This Winter?

If you’re working to make 2017 the year that you get your debt situation under control or are looking to completely eradicate that debt, there are many methods that could help you.

One of the more popular methods is the Debt Snowball method, which is a favorite of personal finance guru Dave Ramsey. It might just be the way to go if you’re looking to drive down that debt.

The Debt Snowball method is simple enough, and involves paying off accounts with the smallest balances first, while making the minimum payments on larger debts. Once the first balance is taken care of, you then move on to the next smallest. This repeats until all balances have been paid and you are debt-free. As you free up more money from paying off balances, you will have even more to put down on the larger balances, hence the snowball concept!

There is also the Debt Avalanche method, which functions the same as a debt snowball, but it instead starts with the balances that have the highest interest rates.

Utilizing a debt calculator can also help you create a plan of attack and get you started off on the right foot.

Sometimes even your best efforts might still not be enough to right a “sinking ship.” If bankruptcy begins to look like the only logical choice, Richard Banks & Associates is here to help. Contact us today, and let’s work on getting you on the right path to financial stability and freedom.