Spend less than you earn. It sounds like a simple directive, but for millions of Americans debt is a harsh reality, sometimes piling up to the point where it feels insurmountable. Getting out of debt isn\u2019t just a mathematical problem; it\u2019s a psychological one as well. So while one strategy may be financially optimal, the best one for you is the one you can stick to over the long term.<\/p>\n
Take stock of your debt<\/strong><\/p>\n Before you formulate a plan, it\u2019s time to step back and look at the main factors you can control as you pay off your debts. First, if you find yourself in a hole, take the age-old advice and stop digging. Whether you establish a basic budget or decide to wing it, you\u2019ll need to find some source of money to pay off your debts. It\u2019s time to create a plan of attack. Here are approaches to consider.<\/p>\n At their roots, the snowball and avalanche strategies play to opposite poles of the human brain. The avalanche appeals to logic, while the snowball appeals more to emotion. You may find yourself somewhere between poles. In that case, you might try to start your debt reduction with an account that combines a relatively high rate with a relatively low balance, giving you the emotional boost of reaching your first milestone quickly.<\/p>\n Like the best diet or exercise plan, in the end, the best debt-reduction strategy is the one you can stick with until you reach your goals. It may take some experimentation to see what type of success gives you enough momentum to reach the next landmark on your path to repayments.<\/p>\n","protected":false},"excerpt":{"rendered":" Spend less than you earn. It sounds like a simple directive, but for millions of Americans debt is a harsh reality, sometimes piling up to the point where it feels insurmountable. Getting out of debt isn\u2019t just a mathematical problem; it\u2019s a psychological one as well. So while one strategy may be financially optimal, the …<\/p>\n\n