Alternatives to Debt Consolidation Loans
IN THIS LESSON
- The debt snowball method to eliminate debt involves making minimum payments on all debt, then paying off the smallest debt to get it out of the way before moving on to bigger ones, regardless of the interest rate.
- The debt avalanche method involves making minimum payments on all debts, then using any remaining money to pay off the debt with the highest interest rate.
- The common theme among all these debt reductions or elimination methods is your mindset. It is about changing your mindset. Don’t open yourself up to more spending.