Does your current debt have you feeling stuck with no place to go? Many people have some form of debt, but it’s not always a healthy amount. Indeed, many people have accumulated so much debt that fighting feelings of hopelessness can be difficult.
But don’t quit.
You can explore many resources. (For example, you can sharpen your knowledge about the importance of responsible credit and debt management as you learn about the best ways to improve your credit score.) Start managing your debt better today with some more attention on your finances.
Consider two techniques for making repayments on a large amount of debt:
- The snowball technique, or the
- avalanche technique.
The snowball approach focuses on first paying off the smallest balances completely while making only minimal payments on other accounts. The avalanche approach, however, pays off the highest interest accounts first and works toward lower interest accounts (my vote is typically the debt snowball method). Note that if you’re considering refinancing through either of these approaches, a personal loan is often your best bet. Other options, such as a cash advance or payday loan, have extraordinarily high interest rates.
Take the Quiz to Test Your Knowledge!
This information may seem like a lot to digest, and you’ll want to do some careful information gathering. Don’t hesitate to speak to a financial advisor if you need some assistance. Keep researching, and remember that the best option for you will depend on your specific requirements and your personal finances.
Expand your understanding of account management options with a simple quiz by Health IQ that explores snowball or avalanche methods of debt reduction. Chances are, you’ll learn something new and be better equipped for paying off your debts!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.