Oscar Wilde once said, “A man who pays his bills on time is soon forgotten.”

You may want to be forgotten in this way for the New Year. And as we continue our “20 Day Financial Fitness Challenge,” I have some ideas, especially for our Action Step #8: Debt Management.

In the last email, I mentioned debt strategy.

There are 4 common strategies you can use that will accelerate your payoff speed:

The Snowball

Focus on paying off the smallest debt first. Then roll the amount you had been paying on that into payments on the next largest.

The Avalanche

Pay off the debt with the highest interest rate first (while paying the minimum payment on other bills). Then do the same with the next highest rate, paying everything down to the bill with the lowest interest rate.

The Combo Attack

Consolidate multiple debts into one by getting a consolidation loan, ideally at a lower interest rate. This can make the payments more manageable and/or the payoff period shorter.

The Sherpa Method

If you’re not making much progress with paying off debt, you might want to contact a nonprofit credit counseling agency who can set up a debt management plan to cut your interest rate and put you on a repayment plan.

Speaking of finding a good guide, we’d like to think we’re yours when figuring out how to get the most out of your money. We want to make sure you enjoy a worry-free life. For some great money-saving and money-making strategies, give us a call at 513-563-PLAN (7526) or book online. We’ll give you the answers you’re looking for.

Tomorrow’s action step covers one of my favorite subjects. Keep your eyes open. It’s a good one!

Dan Cuprill, CFP®