3 Steps , To Overcome Debt and , Regain Control of Your Finances.<br />'The Independent' recently offered readers some advice on how to get holiday debt under control. , Here are 3 things they suggested:.<br />'The Independent' recently offered readers some advice on how to get holiday debt under control. , Here are 3 things they suggested:.<br />1. Determine what you owe , Note the total of each debt, the minimum payment, <br />the interest rate and the monthly due date. .<br />2. Make a budget , This means determining how much you can <br />afford to pay toward your debt every month. .<br />'The Independent' recommends a 50/30/20 <br />framework. This splits up your monthly income <br />into 50% toward necessities, 30% for wants <br />and 20% for paying off your debt or saving. .<br />That just gives somebody a baseline to get<br />a sense of, ‘What do I normally spend? <br />What sort of cash flow should I have to <br />start paying down some of this debt? <br />Are there things that I’m overspending <br />on that I should be able to reduce a little <br />bit to free up some cash to attack the debt?', Jeff McDermott, certified financial planner, <br />via 'The Independent.<br />That just gives somebody a baseline to get<br />a sense of, ‘What do I normally spend? <br />What sort of cash flow should I have to <br />start paying down some of this debt? <br />Are there things that I’m overspending <br />on that I should be able to reduce a little <br />bit to free up some cash to attack the debt?', Jeff McDermott, certified financial planner, <br />via 'The Independent.<br />3. Find a payment strategy that fits, 'The Independent' offers two possible<br />approaches to tackling multiple debts. .<br />First is the debt snowball method, <br />which focuses on the debt with the smallest <br />balance first and then works its way up. .<br />The avalanche method, on the other hand, takes aim at the debt with the highest interest rate first. .<br />The avalanche, where you attack <br />the highest-interest rate debt first, <br />usually makes the most logical sense. <br />It’s the best from a math standpoint, Jeff McDermott, certified financial planner, <br />via 'The Independent.<br />Taking any of these steps can <br />help you to overcome your debt<br />and regain control of your finances.
