Deep in Debt

With over $100,000 in debt, I would probably get a great deal of use out of some financial consolidation software. I’ve been doing a lot of research about paying off debts and the best way to reduce the amount of debt that we have. I’ve chosen to listen to Dave Ramsey – a Christian financial counselor on the radio. He’s against bankruptcy, but he encourages paying off your debts completely. The best way to do this is by listing your debts smallest to largest and paying them off in a debt snowball. This means to make minimum payments on each debt and using any extra money to pay off the first and smallest debt. Then, once that is paid off, take the money you used to apply to that debt and attack the second one. This creates a snowball effect which helps you quickly pay off your bills and gives you peace of mind knowing that you did the right thing.

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