Finance FUNdamentals Part 4

This is one of the biggest issues we have in this country. Here's tip 4 of our Finance Resolutions.

#4: Get control of your debts and start a making a snowball… a debt snowball that is. Debt, particularly credit card debt, is one of the biggest issues in American households today. Why not pay yours off in 2010? A great way to tackle your credit card debt is to create what Dave Ramsey calls a Debt Snowball… list ALL of your debts smallest to biggest in terms of balance owned. Along with the balance, figure out what your minimum payment is each and every month and start trying to pay the the smallest debt off as quickly as possible while still making minimum payments on the rest. Once your first debt is eliminated, take the minimum payment from that debt and add it to the minimum payment on the second debt. Now try and pay AT LEAST that amount on the second debt until it’s eliminated and so on. The idea is to have early success and move one. Are there more “mathematically correct” ways of doing this? Sure. But this is a great way to get started and begin your journey to debt-free living.

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