Do you have debt? If so, you aren’t alone. In fact, the majority of the United States population is in debt, and that debt can be categorized into the following age groups:
- People under 35 have an average amount of $67,400 in debt,
- People in the 35 to 44 year age group have $133,100 in debt,
- People in the 45 to 64 year age group have $108,300 in debt,
- People in the 65 to 74 year age group have $66,000 in debt, and
- People aged 75 years and above have $34,500 in debt.
While most Americans are in some form of debt, very few know how to get out of that debt. Sure, they need to pay down credit cards and loans… But how? One of the most effective methods of paying off debt is by utilizing the debt snowball method.
What Is the Debt Snowball Method?
The debt snowball method is a debt reduction strategy aimed at those with debt from multiple sources. This method advocates for aggressively paying off smaller debts while paying the minimum amount on larger debts. The debt snowball method helps you learn how to stay committed to paying off debts by focusing on one debt at a time until it’s paid off.
Whether you’re in $5,000 of debt or $500,000 of debt, one thing is for sure – it’s extremely difficult to pay back debt without the proper resources. While the debt snowball method is helpful, it’s important to have a way to track and plan your expenses in order to pay off your debt.
That’s where personal finance apps like our budget planner come in! Our app is designed for both online and mobile use and comes with a variety of features. It helps you reduce impulse spending, develop healthy spending habits, track your expenses and save for large financial goals like paying down debt.