It’s tax time—normally a time when our thoughts turn to our finances, and, in most cases, the debt we carry. Whether it’s the mortgage, student loans or credit cards, it can feel like you’ll never be debt-free.

Here are some options to reduce or eliminate debt in a timely way:

Option 1           Rollover Method
∙Focus on the debt with the highest interest rate first while paying the minimum on the others.
∙When that high interest debt is paid off, put that same payment toward the card/loan with the next highest rate.
∙Repeat until all debt is paid off.
∙Deposit that monthly payment into your savings account instead.

Option 2           Snowball Formula
∙Attack the debt with the smallest principal first while paying the minimums on the others.
∙When that debt is paid off, combine that payment with the minimum on debt #2, your second smallest.
∙Your payment will increase each time you switch to the next debt up so eventually you’ll be making the largest payment on the largest debt.

Think about avoiding debt altogether by limiting credit card use to small purchases you make anyway, like the groceries and gas and pay the card off each month. Try creating a serious budget. Create an emergency fund for unexpected costs.

And here’s a tip to pay down your home mortgage: Try paying half your monthly payment every two weeks. Some months will have an additional payment which could add up to one extra payment annually.

Discover all the ways I can help you with your real estate questions and needs on this website or contact me at or at 602-739-2385.

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