Debt avalanche and snowball
Consider these different strategies.
Hello Financial Healers,
Let’s talk about eliminating debt. Debt is more than a financial obstacle. There’s a physical, emotional, and spiritual component attached. Debt effects every part of our being, grinding away at our peace, our relationships, and even our physical health.
The good news is God is bigger than any mountain you will ever face, and this includes debt. Through smart choices, you can bushwhack a path toward Financial Health.
Debt Avalanche and Snowball
Forbes has a great article on the Debt Avalanche, which you can find here. This method is great for tackling large loans that gain the most interest. The downside is the avalanche is a bit of a slog. Lots of people burn out over time while focusing on one huge bill, but if you can manage a long term payment plan, the monetary benefits are massive.
Another payment strategy is the Debt Snowball. This method encourages you to eliminate your smallest debts first. It’s a psychological approach that awards you with confidence each time a bill is eliminated. By “piling” your saved money on to the next smallest loan, you create a sense of momentum that is hard to extinguish.
Which approach is best?
Honestly, both methods are useful, but depending on your situation, one will be a better fit. If you need to discover which option is best, bring a rough estimate of your numbers to our live coaching session this afternoon.
Hop on to our live coaching session
Join us this afternoon at 3:30 PM (CA time). Today’s download is Debt Snowball. Bring in your questions, and let’s get you on the path to Financial Healing!
God bless your Prosperous Soul,
Stephen K. De Silva
About: Stephen K. De Silva is an author, speaker, and financial coach. From 1995 until 2017, he served as the CFO of Bethel Church, and a member of the senior leadership team. Stephen’s blend of experience, training, and gifting make him a pioneer in the subject of money. You can reach Stephen at hello@prosperoussoul.com