There's a reason why it's best to pay off your debts smallest to largest with the debt snowball.
2 Minute ReadTopic: debt
The Baby Steps provide a plan to help you get out of debt, but you have to do the work.
If you’re ready to make some big changes with your money, you’ve come to the right place! Stop worrying about the mistakes that got you into debt, and start focusing on the steps that will help you get out.
Here’s the truth about what it takes to get rid of those student loans, car payments and credit card balances—for good!
Local experts you can trust.Find an ELP
Beware of Quick Fixes
When it comes to knocking out debt, there are no quick fixes. Debt consolidators and managers only delay the inevitable—and they take your money while they’re at it. Besides, you don’t want to "manage" your debt; you want to eliminate it.
There are no shortcuts either. The Baby Steps are numbered for a reason. Don’t skip around! If you try to pay minimum payments on all your debts and save for retirement and give generously, you won’t make much progress.
Follow the plan. It’s simple, but involves work. Real debt help is not quick or easy. Your progress will move at the speed of your motivation. The more motivated you are, the faster you will get out of debt.
Find Your Motivation
It’s normal to shy away from change. And it’s definitely normal to envy your friends who are constantly buying whatever they want on credit.
You May Also Like
But when you feel your resolve slipping, ask yourself this: Do I want my free time (or favorite food or that new car) more than I want to be out of debt?
You have to be willing to sacrifice. That means changing your schedule and working overtime or freelance. It means selling some stuff. And it means cutting back on impulse buys and nonstop restaurant outings.
Getting out of debt has to become your number-one budgeting priority. Only then will you find the motivation you need to win with money. That’s the truth.