3 Ways To Pay Off Debt

In our busy society, debt can be a heavy stressor that sometimes feels insurmountable. Student loans, credit cards, mortgages, weddings, funerals, and relocating, are only a few of the common life events that can really increase your borrowed balances. Our country is build on debtors and no individual debtor is greater than our own government.

Most people don't work with a financial professional to create a strategy to eliminate their debt. Many choose to tough it out on their own. There are no proprietary secrets to paying off debt, however there are several well-known strategies that have upheld their merit over time.

Neither solution is right or wrong, and this short list does not represent the totality of practical debt repayment strategies. This collection does, however, illustrate a selection for debtors to choose from that may align with their personal style and comfort.

Pro Tip - List and organize all your debts. Creditor, balance, interest rate.

1. Debt Snowball

• Pay off smallest balance first ASAP

• Pay the extra towards the next largest debt

• Repeat until all debts are paid

• Builds Momentum and motivation by paying off debts more frequently

* Pay minimum on all other debt

2.Debt Avalanche

• Pay highest interest rate debt first ASAP

• Move to next highest interest rate when paid off

• Repeat until all debts are paid

• Saves interest over time

* Pay minimum on all other debt

3.Debt Consolidation

• Combine your debt into one single balance

• May lower overall interest

• Focused approach due to single payment

• DO NOT accumulate any new debt during the process

If you are currently in debt and it feels like climbing a mountain, you are not alone. There are brighter days ahead if you commit to a plan and remain consistent. Working with a trusted professional can accelerate your process as they may employ additional strategies that can increase your available cash flow.

The New Year is only 10 weeks away and a very common New Year's resolution is financial fitness. Wealth Legion is here to guide you and partner with you to create the financial future you desire.

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This material is for educational purposes only and is not to be considered financial advice. To learn more about the topics discussed here, or for personalized assistance, talk to a qualified financial advisor at Wealth Legion.