The area just north of Baltimore, where my sister and her husband live, was calling for 4-6 inches of snow on Tuesday. My kids are totally jealous. Living south of Atlanta we don’t see much accumulated snow during the winter, if any. Were we there, I know what we would be doing…having a snowball fight.
Snowballs are fun, except when it comes to debt levels snowballing out of control. Credit card after credit card, loan after loan, missed payment after missed payment and the debt skyrockets upward, seemingly with no end in sight.
Until one day, a light bulb flashes and you wake up to realize that debt is creating a stranglehold on your life. It’s decreasing your chances of retiring wealthy and living a stress free financial life. So you decide to focus with intensity and develop a plan that will get you out of debt.
But which debt does one start with? You’ve accumulated so many.
Two Methods: Opposite Sides of the Track
There are two basic methods to paying off debt, the Interest Rate Method and the Debt Snowball Method.