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Many of us have debt reduction goals; however, it’s hard to manage your debts without a plan. There are several debt reduction strategies and programs out there, so let’s take a look at a few of the best.
Debt Avalanche Technique
The debt avalanche technique involves making the minimum payment on each one of your debts. Any remaining funds are paid towards whichever debt has the highest interest rate. After this debt is paid, the leftover repayment money is put towards the debt with the second-highest interest. Debtors should keep on repeating this process until all of their debts are paid off. The debt avalanche method is one of the most popular debt reduction strategies.
The Debt Snowball Technique
The debt snowball method is a strategy where you pay off your smallest debt first, then move onto the second smallest, and so on. The idea is that the small successes that you gain will inspire you to keep on smashing your debt reduction goals. First, you have to make a list of your debts in order of smallest to largest. You should make minimum payments on each debt (but pay as much as you can on the smallest debt),
The DTSS Program
The Debt To Success System offers a ‘DTSS Debt Discharge Membership Program.’ The program is designed to help individuals become debt-free. Whether you have credit card debt, student debt, or mortgage loans, the DTSS program can help you to work towards financial freedom. You’ll gain an improved income to debt ratio, credit profile, and a reduced monthly payment. Many individuals will struggle with their debts for many years, but with the DTSS Program, you no longer have to. For more information, check out this DTSS review.
A Higher Monthly Payment
Real simple, the more you pay off of your debts per month, the better. Making a higher monthly payment will help you to pay off your debts fast. Of course, you may not be able to afford it currently, but what you can do is look to make a few savings. Once you’ve made savings on your monthly expenses, you can put this money straight towards your debts. A few ideas to start saving include:
- Improve your budget: A stricter budget is the easiest way to see where savings can be made. Try apps like Mint or Wally.
- Shop around: Instead of auto-renewing your car insurance and internet package each year, shop around. You might be able to find ‘new-customer deals’ and make yourself some savings.
- Energy-saving: Energy saving appliances can help you to reduce your carbon footprint and save at the same time. Try a smart thermostat, LED bulbs, and water-saving devices.
When you’re looking to reduce your debts it’s helpful to set goals. Whether you’re looking to pay off your student loans or get your credit card debts under control, goals will help you to move in the right direction.
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