Debt Helpers Pro

Current Minimum Payments

Typically if you have high interest credit card payments and you are making the minimum payments on average it would take you 10-15 years or more to pay that debt off. Because daily compounding interest is going against your monthly payments which makes most of it at the end of 30 days go towards interest and not principle. You would have to make at least double, in some cases, triple the minimum payments on debt to make significant impact to pay it off in a reasonable time.

Increase your income and/or decrease your expenses will be the only you can do the do it yourself method effectively. Even then you’ll be able to calculate what that raise at work would do or what eliminating that car payment can do for your debt. But overall at least one of those things has to happen.

Once you increase your income or lowered your expenses you can then try one of these two methods. However, without a significant change in either neither one of these things will have much more of an effect than minimum payments

Snowball affect

The Snowball Method is a debt repayment strategy that focuses on tackling multiple debts by starting with the smallest balances first and gradually working your way up to the larger ones. This method is designed to provide psychological and motivational benefits, as it creates a sense of accomplishment and momentum by paying off smaller debts early in the process. Here’s how the Snowball Method works:

1. List Your Debts: Begin by listing all your debts, including credit card balances, personal loans, medical bills, and any other outstanding obligations. Include the total amount owed, the minimum monthly payment, and the interest rate for each debt.
2. Order by Balance: Arrange your debts in ascending order based on the outstanding balance. The debt with the smallest balance will be at the top of the list.
3. Minimum Payments: Continue making the minimum monthly payments on all your debts to maintain your credit and financial stability.
4. Allocate Extra Funds: Identify an amount of extra money you can put toward debt repayment each month. This could be money saved from cutting unnecessary expenses or an additional income source.
5. Attack the Smallest Debt: Take the extra funds you allocated and put them toward the debt with the smallest balance. Pay as much as you can above the minimum payment for this debt.
6. Celebrate Progress: As you successfully pay off the smallest debt, you’ll experience a sense of accomplishment and motivation. This psychological boost is a key aspect of the Snowball Method.
7. Move to the Next Debt: Once the smallest debt is paid off, take the total amount you were paying on it (including the minimum payment and the extra funds) and add it to the minimum payment of the next smallest debt on your list.
8. Repeat and Build Momentum: Continue this process of paying off debts, “snowballing” the freed-up funds from each paid-off debt into the next one on the list. With each debt paid off, the amount available for debt repayment grows, allowing you to tackle larger and larger debts.
9. Reach Larger Debts: As you work your way up the list, you’ll eventually start targeting larger debts. The momentum and motivation from paying off smaller debts will help you stay committed to the process.
10. Debt-Free Victory: Eventually, you’ll reach your final debt, which will likely be a larger one. By this point, the snowball of payments you’ve been making will have grown substantially, allowing you to make significant progress on clearing this last debt.

The Snowball Method stands in contrast to another popular debt repayment strategy called the “Avalanche Method,” which prioritizes paying off debts with the highest interest rates first. While the Snowball Method may not mathematically save you as much on interest payments, its psychological benefits often make it more effective for individuals who need the motivation and encouragement to stay committed to their debt repayment journey.

Avalanche Affect

The Avalanche Method is a debt repayment strategy that prioritizes paying off debts with the highest interest rates first. This method is based on the idea that focusing on the debts with the highest interest rates will save you the most money on interest payments in the long run. Here’s how the Avalanche Method works:

1. List Your Debts: Similar to the Snowball Method, start by listing all your debts, including credit card balances, personal loans, medical bills, and any other outstanding obligations. Include the total amount owed, the minimum monthly payment, and the interest rate for each debt.
2. Order by Interest Rate: Arrange your debts in descending order based on the interest rate. The debt with the highest interest rate will be at the top of the list.
3. Minimum Payments: Continue making the minimum monthly payments on all your debts to maintain your credit and financial stability.
4. Allocate Extra Funds: Identify an amount of extra money you can put toward debt repayment each month. This could be money saved from cutting unnecessary expenses or an additional income source.
5. Attack the Highest Interest Debt: Take the extra funds you allocated and put them toward the debt with the highest interest rate. Pay as much as you can above the minimum payment for this debt.
6. Mathematically Optimal: The Avalanche Method is considered mathematically optimal because it minimizes the amount of interest you pay over the long term. By targeting high-interest debts first, you’re reducing the overall cost of your debt.
7. Debt Elimination Sequence: As you successfully pay off debts with high interest rates, you’ll gradually move down the list to debts with lower interest rates.
8. Persistence and Discipline: The Avalanche Method may not provide the same immediate psychological rewards as the Snowball Method, as you might not see quick wins from paying off smaller balances. However, it requires discipline and a focus on the bigger financial picture.
9. Larger Payments for Larger Debts: As you eliminate high-interest debts, the amount you were paying towards them becomes available to put towards the next debt on the list. Over time, this snowball effect allows you to allocate larger amounts toward debt repayment.
10. Achieve Debt Freedom: The Avalanche Method helps you pay off your debts in a strategic manner, targeting the most financially damaging debts first. Eventually, you’ll reach the point where you’re left with lower-interest debts and a more manageable path towards debt freedom.

While the Avalanche Method might not offer the same psychological motivation as the Snowball Method due to its focus on interest rates rather than debt balance, it can be an effective approach for individuals who are comfortable prioritizing long-term financial savings over immediate emotional rewards. It’s important to choose the method that aligns with your personality, financial goals, and motivations.

Gift Or inheritance or Lottery

Another way to pay off the debt would be to receive a gift or inheartaince from a friend or family who is willing to help you elminate your high interest debt. However, not many people are fortunate enough to do this let alone not many friends or family would want to give up their hard earned money to pay for your financial choices. However, some people can have this ability and if you do you it could help you eliminate high interest debt fast.