Cash Flow & Debt Solutions
Who doesn’t want to have more money to spend each month? Especially if you can use some of those dollars for things like vacations, your next vehicle purchase, children’s education savings and retirement!
A Your FIRM advisor can walk you through creating a budget, finding cash flow issues and helping you set goals to stay on track. If it makes sense and is needed, your advisor can also walk you through a consolidation process to fast track your debt elimination program.
Interested? Fill out the form on our Contact page and we will send a link to get you started.
Want to try and go it alone? Here are some strategies:
Snowball Method
The image is supposed to be that of a snowball rolling downhill, getting larger as it goes and picking up speed. When it comes to paying down your debts, it won’t be that fast, but it can get larger and pick up speed. Here is how the snowball works; you have a $$ amount that you can put toward your debts each month. You also have debts that require you to make minimum payments. Let’s assume you have $1000 to put toward your debts and $400 in minimum payments. The remaining $600 goes against the debt with the smallest balance. Once that first debt is gone, the $600 and the minimum payment from that debt now get added to the payment of the next debt with the smallest balance (snowball just got bigger, and is moving faster). This continues until the debts are gone. Although this is not the fastest method, behavioural finance studies tell us that this method has the most success. It turns out people like to see the number of debts they have go down – it makes them feel like they are making progress.
Debt Stacking Method
This method is very similar to the Snowball method mentioned above, with 1 key difference. Instead of put the extra $$’s toward the debt with the smallest balance, put them toward the debt with the highest interest rate – Always against the debt with the highest interest rate. This will save you the most in interest costs and will therefore be the fastest way to pay down all your debts. Then, once that first debt is gone, the $600 and the minimum payment from that debt now get added to the payment of the next debt with the highest interest rate. You will have to take an honest look at yourself, and decide which method will work best for you.
IS A DIVISION OF
