Debt snowball? Debt avalanche? Sound wintry. And confusing. What’s the difference between the two? And which one is right for you? In this episode, I unpack these two methods of paying off debt.
Here are the questions we answer:
Question #1 – Why do I put money toward debt before my 3-6 months emergency?
Question #2 – Shouldn’t I pay off my higher balance, higher rate credit card before my lower balance, lower interest rate credit card?
Here is this episode’s Money Challenge:
Put together you debt snowball plan. Take all of your debts (except your mortgage). Order them from smallest balance to largest balance. This is the order in which you pay them off. Now, go for it. Crush that debt. Get rid of that generosity killer.
And if you don’t mind, go to iTunes or where you listen to podcasts and give us a rating and review. We love hearing from you!