Paying off debt is definitely the most difficult part of the Financial Action Plan that I have made for you all. When doing so, you need to have a method that is effective and will allow you to be motivated about and confident in your ability to pay off all your debt in a timely fashion. In order to do this, you should employ the debt snowball method: paying off debts from lowest amount to highest amount. You may think that interest rate ranking, or the debt avalanche method, is the best way to go about debt repayment, but it lacks in its ability to create successful financial behaviors that will truly get you to long-term financial success. Today, we will discuss:
1. What the debt snowball and debt avalanche methods are
2. Why the debt snowball method works
3. Why paying off debt efficiently is important in your financial plan
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(Please keep in mind that I am not a financial advisor. I create these videos for educational purposes only. You and only you are responsible for the investment decisions that you make.)