Here's 2 Ways you can Eliminate Debt...

Majority of consumers have credit card debt and have no clear solution on how to pay it down. Dave Ramsey created a strategy on paying down debt that included highest interest rate and highest amount.

Debt Avalanche

The Debt Avalanche method is one way to reduce debt by paying off your balance with the higher interest rate first. Mathematically speaking, you’ll save more on interest fees.

1. List all of your outstanding debts and organize them from largest interest rate to the smallest interest rate. *Be sure to include the minimum payments

2. Pay the minimum for every debt you own except the one with the highest interest. For example, instead of paying the minimum of $50 pay between $80-$100 every pay period.

3. Pay down and eliminate the debt with the higher interest rate and then repeat until all debt is paid.

Debt Snowball

Debt Snowball in my opinion is the best option and easiest to manage. This method requires you to pay off your debts starting with the lowest balance first. Eliminating the smallest debt will result with quick pay offs and keeps you motivated.

**Make a $50 payment for Credit Card #2

1. List your debts from smallest to largest balance and include the minimum payments due.

2. Pay the minimum for all of your balances except for the least amount. For the figure above it will be Credit Card #2.

3. Pay more towards the smallest debt or pay twice as much each pay period

4. Snowball until you’re debt free.