This week the Motherhood and Money Show focuses on ways to pay off debt. Here are a few things Bethany and Marissa cover:
Ways to Pay off debt:
- Debt snowball: list debts smallest to largest amounts
- Debt avalanche: list debts largest to smallest interest rate
During the process:
- Write a budget: Know how much you make, and how much you’re spending
- Cut things out of the budget to make more room to pay off debt
- Take on a side hustle
- Intensity: “gazelle intense” vs slow paying
- Calculate debt-free date: Calculators online, or simply the grand total divided by how much you can pay each month
- Use a tracker to track progress
- Have something to look forward to when you pay off each debt
FAQs:
- Should you still eat out/treat yourself?
- Should you chop up your credit cards?
- Should you still invest/save for retirement?
- Should you tell my friends you're paying off debt?
