The two principles that were said over and over are Snowball and Avalanche method. 1) Snowball method is good to use because you can begin to feel relief from getting rid of debt quicker instead of just paying minimums all of the time, knocking off the smaller ones one at a time lessens the weight of debt. 2) Avalanche method eliminates the higher balance credit cards first and is another way of looking at eliminating debt. These two principles help you realize how debt bears down on you, you begin to feel the relief faster and possibly you will remain out of debt after all of this because you know what difficulties debt causes. Also these two principles are what our Personal Finance class is focusing on to be DEBT FREE! Another principle that was mentioned was debt consolidation I would only see this as viable if you had really high interest on your credit cards and wanted to lower that interest into one rate instead of many rates.
This article talks about 1) Debt consolidation bringing debt together and making one payment but you will be paying the debt off for a long time. 2) Snowball Method - pay off lowest balance first with as much money as possible each month while paying minimum balance on others. 3) Need to change your behavior because Personal Finance is 20% knowledge and 80% behavior.
This video mentions three ways to pay off debt: 1) Balance matching which results in a lot of interest being paid and not the principle. 2) Avalanche method - you pay the highest interest rate bill off first and then proceed to the next, this makes mathematical sense. 3) Snowball method - you pay off the lowest balance first and then the next lowest balance while making minimum payments on the rest. The second and third methods can help you become debt free which is the whole focus of this Personal Finance Class.
1) One way to help cut down on credit card debt is to consolidate your cards into one loan payment with a lower interest rate. 2) Tackle the smallest balance first, pay as much as you can each month on this balance until paid off while making the minimum payments on the others. 3) Pay down the credit card with the highest interest rate by putting as much as you can on this card while making minimum payments to the other cards. 4) Consider a balance transfer credit card with 0%, where your balance can be there for a long period of time around 12 months before interest is due, there is an up front cost of at least 3% - 5% initially. 5) Get a personal loan where all the bills can be brought together under one umbrella at a much lower interest rate
This article talks about three things: 1) Making a budget so you know where your money is going so you do not overspend and then how much extra you have available to put toward your debt. 2) Debt consolidation - bringing your bills together into one debt and making one payment and usually at a lower interest rate. 3) Bankruptcy - has long lasting consequences and hampers your credit. There is Chapter 7 where bills are put on a payment plan and Chapter 13 where all bills are erased.