Paying off debt can be a tedious and stressful task, lucky for you I’m going to share my top two strategies that can make paying out these shadow monsters with ease and flexibility. 

Tip: Write down a budget including your cost of living and expenses. Identify areas where you can cut back spending and calculate how much surplus cash you have. This will be useful to know for step 3 in both below strategies. 

Debt Snowball Method ❄️💰

Steps:

1. List all your debts from smallest to largest. 
2. Ring and organise with the creditor to make minimum payments on all debts.
3. Allocate the surplus funds from your budget to paying off the smallest debt.
4. Once the smallest debt is paid off move to the next smallest, adding the amount you were paying on the previous debt to this one.
5. Repeat until all debts are paid off 🌟🔑

Paying out debts with this method ensures that all debts have a payment plan in place to avoid default and provides you with quick wins as you pay off each of the smaller debts with extra repayments. 

Debt Avalanche Method 🏔️

This strategy focuses on paying off debts with the highest interest rates first to save on interest payments over time.

Steps:

1. List all your debts from highest to lowest interest rate.
2. Ring and organise with the creditor to make minimum payments on all debts.
3. Allocate the surplus funds from your budget to paying off the debt with the highest interest rate.
4. Once the highest interest rate debt is paid off move to the next highest, adding the amount you were paying on the previous debt to this one.
5. Repeat until all debts are paid off 🌟🔑

Make contact and book a time with me to discuss your home buying journey! 🏡✨