Is The Snowball Method An Appropriate Debt Repayment Strategy For You?
Another year, another set of good intentions about paying off your debts. You have been doing this for as long as you have been old enough to make New Year’s Resolutions more ambitious than to quit biting your fingernails or to confess your feelings to your crush before graduation. Will 2022 be any different? There are several reasons to think that it will. First, the No Surprises Act protects you from receiving huge medical bills for minor medical procedures. Second, if you are employed, you can always use caution about the omicron variant as an excuse to stay home and work on income-generating or money-saving projects and to avoid impulse purchases and money-sucking recreational activities. If your debt problems require a bigger intervention, contact a Miami debt consolidation lawyer.
The Coolest Snowball in Florida?
If you have a steady income and there are even a few pennies left in your monthly budget after paying for necessities and making minimum payments on debts, then put as much extra money as you can afford toward one debt while making minimum payments on the others. This is known as the snowball method, because once you pay off the first debt, you put any available money toward paying off the second debt and so on. Economists would advise you to put all the extra money toward the debt with the highest interest rate because, by paying that one off first, you will be saving the greatest amount of money on interest. You might find it more manageable to pay off the debt with the lowest balance first; if you do this, you might even find that you have paid off one or more debts in full by the end of 2022, meaning that you can start 2023 with a much higher credit score.
When You Have a Snowball’s Chance in Florida of Repaying Your Debt
The snowball method can be an effective way of tackling your debt, provided that you have a reliable source of income that enables you to make at least the minimum payments on all of your debts. When you are experiencing a major financial catastrophe, such as being unable to work because of illness or being laid off from your job, there might not be enough money on hand to make the snowball method feasible. In this case, consolidating your debt might be the best option. Debt consolidation typically involves taking out a personal loan with a low interest rate and using it to pay off your most expensive debts. It can help you make a dent in debt repayment while leaving you with a low monthly payment until you can get back onto firmer financial footing.
Find Out If Debt Consolidation Is Right for You
Debt consolidation is not a magic wand, but it can be a lifeline for people who are struggling with consumer debt. Don’t file for bankruptcy until you have met with a debt consolidation lawyer to find out whether debt consolidation is feasible in your situation. Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.