I had planned to write something else for this week’s post but then I was surprised. As I rode in the car and listened to the radio, a local bank sponsored a message. I was shocked but filled with joy that they had talked about this. If I hear it on our local radio again, I will have to edit this and give props.
The Debt Avalanche Method is one way to help pay off your debts and help push you back to the green. It was a very timely commercial for how the current economic environment is as well.
The way this method works is that you will make the minimum payment on all of your bills. The extra money that you have or that you were going to throw towards extra on all bills, you focus on putting all of it on your debt with the highest interest rate. Doing so helps you pay off the high-interest debts faster and reduce the amount of money you pay in interest.
To use this method, it does require discipline and extra money after all bills are paid. Both of these can be achieved by analyzing what you spend on and determining if they are wants or needs. Wants can also hide as needs at times and you may discern something is a want when it truly is a need. An example would be that morning coffee. This can be classified as a want, however, if it helps you be more productive and gives you the boost you need throughout the day, it is a need.
The Debt Avalanche Method is one that is not often talked about, but something that can help you get your outstanding debts paid down. We are currently employing this method personally and I do see a light at the end of the tunnel when it comes to being debt-free. Hope this helps and thank you for reading.
-Vincent
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