Part 6: How to Attack Debt

In this video, we will explore how to attack debt using the debt snowball method. The first step is to list all your debts from smallest to largest, regardless of the interest rate. Paying off smaller debts first can provide a sense of accomplishment and motivation to continue with your debt payoff plan. It can also help you reduce the number of monthly payments you need to make, freeing up money to pay down larger debts more quickly.

Next, you need to figure out how much money you can safely allocate towards paying off debt each month. Once you have a clear understanding of your finances, you can determine how much money you can safely allocate towards paying off debt without putting yourself in financial jeopardy. As you pay off your debts using the snowball method, you will roll your payments from one debt to the next until you eventually reach the end of the snowball and become debt-free.

As you start to make progress in paying off your debts, you will notice that you have more money available each month. This extra money is like getting a raise, and it's essential to use it wisely. One strategy is to continue to put the extra money towards paying off your debts. Another is to use the extra money to achieve other financial goals, such as building an emergency fund, saving for a down payment on a house, or investing for retirement. The key is to avoid the temptation to spend the extra money on unnecessary expenses and instead use it to create a solid financial foundation for your future.