The Pay off Your Debt Faster continues with the next step – figuring out the best debt payoff method as couple.
By now you two have a clear idea of how much debt you’re in (and how you got there) and you two have read up on the basics of paying off debt.
Now it’s time to make a choice – decide on how you’re going to pay debt and get started right away.
Getting Rid of Debt: Numbers vs Emotions
Last week I mentioned that most debt pay off method boil down to arranging your debts and either attacking them by their interest rate or by debt amount.
While very similar in appearance – you’re tackling debts one by one and building up your payments as you plow through them – there is a different reasoning behind them and that can make all the difference between your success or failure.
With the debt avalanche, you are interested in paying off your debt as fast as possible.
You’re motivated by the numbers and are determined to make sure that your lenders don’t a penny extra from you than necessary.
How to Pay off Debt Faster: Finding the Best Strategy for You http://ctt.ec/16ICs+ @Elle_CM #money #yakezie
The debt snowball offers a behaviorally motivating set up as you get wins quicker towards the beginning.
As each debt fall off your list, you two build momentum to tackle the next debt. You’re more concerned with crossing the finishing line rather than the speed in which you get there.
Being debt free is a goal you can’t afford to miss and you know that personal finance is more than just numbers with the two of you.
Which Time-Frame Works for You Two?
I believe for many couples one of the big factors in deciding what works for them is how quickly they can get out of debt. That means looking at both methods head to head and see the numbers and time-frame.
There are several ways you can do this; for me I love using spreadsheets.
Elle Martinez helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second..