A reader asked about the best way to clear debt: "I owe about 12k and my partner a bit more. We are well paid but we can't rely on the bonuses and we want to get a house as soon as possible. What do you suggest? Preferably easy as we both work long hours - please don't tell me to take sandwiches to work!" First well done on taking the decision to do something about your debts. It's pretty easy … [Read more...]
Articles about "Snowballing" - how to clear debt fast
"Snowballing" is the name given to method of paying off your debts as fast as possible, by paying the minimum to all except one and overpaying that one by as much as possible every month. You will also end up with a great credit record!
To find how this works, how to choose which debt to make your top priority and ideas about how you can snowball most effectively, see Debt Camel's Guide to Snowballing.
This page is an archive of all articles about Snowballing in date order.
If you have a pile of debt you need to clear, is it better to increase your income or cut your expenses? Obviously either can be a big help, which is why they are both included in Debt Camel's Toolkit for Improving Your Finances. But I asked two of my favourite personal finance bloggers in Britain to write about which approach feels more important to them. Jane Clark is the blogger … [Read more...]
A game of snakes and ladders with its ups and downs is like clearing debt. Each month you should move at least one square forwards, repaying some of your debt. So what can you do to avoid the snakes, or maximise your chance of getting on a ladder? 1) Get an emergency fund This may seem odd. If you pause to save up an emergency find at the beginning, it's going to take longer to get to the … [Read more...]
Have you heard of "present bias"? It's not wanting a jumper for your birthday rather than a bottle of wine, it's a behavioural economics term for a self-delusion that everyone suffers from to some extent. It affects many areas of life and one of the most important is making poor decisions about money - present bias makes it easy to get into debt and much harder to climb out. All too often we … [Read more...]
If you are serious about paying off your debt, stopping using your credit cards and catalogues is the key first step to take. Until your debt stops increasing, you can't make a realistic plan to clear your current debt. As the saying goes, if you want to get out of a hole, then stop digging. But how hard will it be? Four common excuses for not giving it a go Do you recognise any of … [Read more...]