Credit cards are one of the most convenient and useful financial tools available—but we all know that sometimes credit cards get abused and we end up running up a lot of debt. Those credit card payments can be a real drag (and can have other detrimental effects), so perhaps you can apply the Snowball Method to help pay that debt down.
Researchers have found that consumers who pay off small balances first are more likely to eliminate their entire debt than those focusing on other strategies because of the positive feelings you get when you achieve successes early in the process.
We’ll be exploring more on the topic of credit cards and credit scores in a future Purse Strings guides, but for now, let’s look at a proven way to begin tackling consumer debt if you’re currently carrying some and want to reduce it.
As you can see, the amount of money you have over time starts to snowball, getting bigger and bigger. And as you pay off those debts, you feel better and better! You take the power back and get yourself out of the debt spiral.
There are cool apps that can help you manage your money? Try Trim! It watches your accounts for you and let’s you know great info like when your cable bill is overcharging you, if your bank has assessed a fee or what your occurring subscriptions are – and they will take care of canceling anything and getting your money back!