Tax Day and Finance Advice

I guess most of us have some type of debt, repay loans we took when we study, credit card debt, car, etc..

I have a couple of debts and after some research I think I found the most satisfactory way to pay them. It uses the debt snowball (in English it says debt snowball ), which are:

List of all your debts, with less debt with the largest balance in the top of the list. Many times we deny that we have debts (usually the left as pending issue) so it might hurt a little list them.
Set aside as much as possible of your monthly budget to debt elimination . I am devoting 20% of my income to kill my debts. I would like to spend more, but for now I can not, then I will reduce my expenses, which today is complicated, so I have to deal with in another post Make the minimum payments for each of your debts except the one that occupies position number one on your list.

For debt number one, pay the maximum amount you can until the debt is evaporated.
When debt is eliminated, repeat with the other.
This method is called the snowball method of debt because once you’ve paid the debt which occupies number one position in the list, other debt will be in place, but unless you have a debt to which you are bound to pay a minimum.

Every time you pay a debt, the amount of money you can spend the remaining debts are a little bigger, like a snowball rolling on a hill.

So far I’ve managed to pay a debt and it feels very nice, clear my debts is one of my main goals for me this year, and the first step in doing that I’ve taken. Really a vital habit, recommended it a lot!

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