I’ve been working on paying down my debt but it feels like it’s taking forever. I’m wondering if anyone has strategies that have worked for them? I’ve heard about the snowball and avalanche methods but not sure which is better. Also, has anyone tried debt consolidation? Appreciate any advice!
I’ve used the debt snowball method and it really helped me stay motivated. Basically, you pay off your smallest balance first, and then roll that payment into the next one. It’s like little wins keep you going. Have you thought about starting with that?
@Gabi
I’ve been thinking about that! I like the idea of getting those quick wins. Did you find it hard to stick with it?
@Gabi
Not really, once I saw my first debt disappear it was actually motivating. Seeing the progress helped a lot.
I went with the avalanche method because I wanted to save on interest. It’s a bit slower at first since you tackle the debt with the highest interest rate, but in the long run, it’s cheaper. Depends on what you’re aiming for—speed or saving money.
@Ozzie
That’s what I was wondering—whether snowball or avalanche makes more sense. Sounds like avalanche saves more in the long run?
@Ozzie
Exactly. It’s slower to get that first debt paid off, but if you can hang in there, you’ll save more by tackling high-interest debt first.
Debt consolidation worked for me. I used a loan to pay off my credit cards and now I just make one payment at a lower interest rate. You need a decent credit score to get a good rate though. Have you looked into that option?
@Chancey
Yeah, I’ve thought about consolidation but wasn’t sure if I’d qualify. How much did your rate drop with the consolidation?
@Chancey
I went from about 20% on my credit cards to 8% with the consolidation loan. It made a huge difference.
Don’t forget to budget carefully! I used the 50/30/20 rule and it helped me prioritize debt payments while still covering essentials. Have you looked at your budget to see where you can free up money?
Paden said:
Don’t forget to budget carefully! I used the 50/30/20 rule and it helped me prioritize debt payments while still covering essentials. Have you looked at your budget to see where you can free up money?
I’ve tried budgeting but it’s been hard to stick with. Do you think the 50/30/20 rule is a good way to stay on track?
Paden said:
Don’t forget to budget carefully! I used the 50/30/20 rule and it helped me prioritize debt payments while still covering essentials. Have you looked at your budget to see where you can free up money?
Yeah, it’s pretty flexible. The key is to make sure 20% of your income goes to savings or debt payments. It helped me stay consistent.
If you’re struggling to make progress, maybe look into ways to boost your income? I did some side gigs and used that extra cash to pay off debt faster.
Arie said:
If you’re struggling to make progress, maybe look into ways to boost your income? I did some side gigs and used that extra cash to pay off debt faster.
Good idea! What kind of side gigs did you do?
Arie said:
If you’re struggling to make progress, maybe look into ways to boost your income? I did some side gigs and used that extra cash to pay off debt faster.
I did dog walking and freelance writing on the side. It wasn’t much but every bit helped. Have you thought about picking up something small like that?