RICHMOND, Va. (WWBT) - All this week- we are going over ways to pay off those credit cards.
Today we tackle the popular avalanche method of paying down debt. A lot of us have turned to credit card for help during the pandemic. If you are able-- here’s a way to start paying down the debt.
Rank your loans from highest interest rate to lowest interest rate.
Pay an extra money you can to the loan with the highest interest rate-- the minimum on the rest.
When the debt with the highest interest rate is paid off-- take everything you were putting toward it and add it to the payment with the next highest interest rate.
Cherry Dale a financial coach with the Virginia Credit Union says its important whatever method you choose to get rid of debt-- you need make sure everyone in your household knows how it works. “because it’s so easy to go back and use that credit card and you really have to be disciplined and have a plan and have somebody on your side to cheer you on in getting out of that debt.”
The avalanche method-- really goes after how much extra you are paying for each credit card-- trying to get rid of the high interest payments first.
You repeat this process over and over until you’ve paid off all your debts.
On Friday of this week we look at the difference between debt consolidation and debt management companies.
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