Choose One Of These Two Payments Methods To Get Out Of Credit Card Debt Much Faster
What’s the snowball method of credit card payments?
Picture a snowball. Don’t picture it coming at your face, envision it
on the ground. It starts small and after continuous rolls it gets
bigger and bigger AND NOW picture it coming at your face.
The snowball method was made famous by financial author Dave Ramsey.
First, list all your debts from the smallest balance to the largest
balance — regardless of the interest rate — and start with the smallest
balance. Each month, pay only the minimum on all the other balances and
focus the rest of your money on paying off that first balance. Once
that’s gone, move onto the next balance and so on. The benefit to the
snowball method is there’s a feeling of accomplishment in seeing each
debt disappear.
So what’s the avalanche method of credit card payments?
Avalanches are scary as hell. Also scary is the biggest of your
credit card balance. That number would make most people dump in their
shorts. With the avalanche method, a person works on paying off their
highest balance first. No matter how large. It’s the same method as
snowball except all the small balances get minimum payments and the
massive debt gets the big chunks of cash.
(BroBible.com)
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