How to pay off your debts and start the year off on the right foot

In this article we will teach you some of the specialist advice for a financial life more specifically how to pay your debts And so, start the anus with the right foot.

How to pay your debts
Make a repayment plan.
Start by figuring out what you owe, then decide whether to use the “debt avalanche” or “debt snowball” method to scrap those revolving loans.

The avalanche method lists your debts from highest to lowest based on interest rate. This way, you pay off the debts that accrue the most interest first.

Alternatively, the snowball method prioritizes the smallest debts first, regardless of interest rate. The idea is that you gain momentum as the debts are paid off and that will motivate you to keep going.

"Having a plan for how to pay off debt can keep you focused on what it will take to achieve 'financial freedom,'" Schwab-Pomerantz said.

This budget strategy helped a Michigan couple pay off their mortgage early
Get a balance transfer.
Experts often recommend switching that balance from a high-interest rate credit card to one with a low-interest or no-interest balance transfer offer to reduce the amount of interest you're paying.

"Now is a good time to focus on paying down debt because many credit card companies are offering zero APR on balance transfers," said Paul Miller, CPA and Managing Partner at Miller & Company LLP. in Whitestone, New York.

Most of the offers allow you to pay 0% of interest for a year or more. However, if you do not pay the balance in full, a new annual percentage rate will be applied to the remaining amount.

Plus, most cards also have a one-time balance transfer fee, which is usually around 3% on the account – something to watch out for.

Ask your broadcaster for a break.
At any time, cardholders saddled with high-interest debt can also contact their issuer directly to request a break in interest rates, these are great ways to understand how to pay off your debts 

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"Consumers have a lot more power than they realize," said Sara Rathner, a credit card expert at NerdWallet.

In a recent one-year period, more than three-quarters of cardholders who requested a lower rate got it, with most getting a reduction of 5 to 6 percentage points, according to research by CompareCards.com.

Put your cards on ice.
Put your credit cards in a drawer, or hide them if necessary. Then switch to a debit card and commit to spending only the money you have on hand, at least temporarily and finally understand how to pay off your debts