by Heather, April 12, 2012
We have looked at a few different ways to help with reducing your debt. The snowball method and the highest interest methods are both great options for you to look at when selecting the best way for organizing your debt reduction. There is another method that has been proven to be effective when looking for solutions to reducing your debt.
This method is based on structuring your most pressing debt first. If you are facing liens, lawsuits or big Tax issues, focusing on these types of problems is going to help you reduce your stress right along with your debt.
The easiest way to work on reducing your debt for this type of structure is to Snowball your payments. Pay the minimums on your credit cards and other obligations and then take any amount left over that you normally would pay and add to it as much as you can afford over and above. Start paying as much as possible on the most pressing issue first.
As you pay off one bill, add the total amount you were paying on it onto the next most pressing bill and so on. Soon you will see your balances dropping very quickly as you get a hold of your debt reduction.
This is a good alternative to the other methods and of course choosing the one that fits best into your personal situation will be the best on for you. Don’t forget to start with your Emergency Fund!