If you find yourself with too much debt, you’re not alone. America has a debt problem. The accumulation of high-interest debt is one of the quickest ways to derail your financial life, so it’s no surprise that strategies and philosophies on debt re-payment are a popular topic among financial commentators. With so many people telling you what to do with your debt, how do you know which approach is the best? In this episode, we break down two of the most popular approaches to debt re-payment (the Debt Snowball and the Debt Avalanche,) then do the math to help you understand which one will maximize your money and get your finances back on track!
In this episode, you’ll learn:
- Why America has a debt problem
- The most common types of debt that derail financial goals
- The difference between the Debt Snowball and Debt Avalanche approaches
- How interest rates make all the difference when creating a debt re-payment plan
Research and resources from this episode:
- Credit Card Debt in 2020: Balances Drop for the First Time in Eight Years (Experian)
- New Report: How Credit Card Debt Impacts the Average American (Clever)
- Credit-Card Debt Keeps Falling. Banks Are On Edge. (WSJ)
- State of the Auto Finance Market Q4 2020 (Experian)
- A Look at the Shocking Student Loan Debt Statistics for 2021 (Student Loan Hero)
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