Hey there budget besties! Shana and Vanessa here, ready to dive into a question that’s been on a lot of your minds: What’s the fastest way to pay down debt? Is it putting extra money towards the principle, or just making extra payments? It’s a fantastic question, and you’re absolutely right to ask. Those credit card companies, they really do make it confusing on purpose, don’t they? Their goal is to keep us paying just a tad more—forever.

Don’t you worry, though; we’re here to clarify things and guide you towards becoming debt-free as swiftly as possible. So, buckle up, because we’re about to give you the lowdown on tackling your debt head-on.

Understanding the Confusion:

First things first, let’s tackle this confusion head-on. Whether you’re making extra payments or putting extra money towards the principal, it essentially boils down to the same thing. Any amount you pay over your minimum goes toward your principal. Why does this matter? Because your interest is calculated based on your principal balance. The lower your principal, the less interest you pay over time.

The Power of Focused Repayment Methods:

Ever heard of the snowball and avalanche methods? These strategies are golden because they focus on paying off one debt at a time, either starting with the smallest balance (snowball) or the highest interest rate (avalanche). By channeling extra funds to one debt instead of spreading them thin across multiple debts, you can see progress faster and save on interest.

---

Join Our Group Coaching:

And guess what? You can dive deeper into these strategies and get personalized advice through our group coaching program. For just $57 a month, you’ll join us for two sessions a month, where we’ll tackle everything from budget building to strategic debt repayment. Our first session was a blast, full of insightful questions and awesome coaching. It’s a space where every question, even the ones you might be hesitant to ask, gets answered.

Why Choose Us:

Why join us, you might ask? Because we’re here to give you that bird’s eye view, free from the emotional attachment you have to your money. We’re like your financial doctors, diagnosing and treating your budgetary needs without judgment. And remember, there’s no shame in seeking a little guidance. We’ve seen it all, and we’re here to help you navigate through the financial fog.

Actionable Steps:

1. Reassess Your Payments: Take a look at how you’re currently distributing extra payments across debts. Could focusing on one debt at a time (snowball or avalanche) make a difference for you?
2. Consider Our Group Coaching: If you’re seeking personalized advice and a supportive community, our group coaching might be just what you need. Head over to budgetbesties.com to join our next session and start your journey toward financial clarity.

Remember, the path to debt freedom isn’t a sprint; it’s a marathon. And with the right strategies and support, you can cross that finish line faster than you think. Let’s tackle that debt, one payment at a time.

Stay fabulous,
Shana & Vanessa

Book Your Free Call Now!

We are excited to create the time & space to talk to you about your current money situation. This is a free, no-obligation call where we can answer questions you may have and maybe find some quick wins for your budget.

What do you have to lose?

Article Suggestions:

• Snowball vs. Avalanche: Which Debt Repayment Strategy Is Best for You?
• Understanding Your Credit Card Statement

Please replace ‘example.com’ with actual links to relevant resources.