Start by understanding your financial situation.
List all debts, their interest rates, and monthly payments. This helps visualize your overall debt.
Next, prioritize. High-interest debts generally need to be paid first. However, the “snowball method” recommends paying the smallest debts first for motivational boosts.
Thirdly, create a budget. Allocate specific portions of your income to repayments. Reducing non-essential expenses increases the amount available for debt reduction.
Incorporating these steps into a strategic plan can accelerate your journey towards becoming debt-free.
Photo by Jeremy Bishop on Unsplash