How can I effectively manage my debt?
Managing debt involves creating a budget, prioritizing payments, and exploring consolidation options. What type of debt do you have?
I have credit card debt and a personal loan. It's overwhelming.
I understand. Start by listing all your debts, including interest rates. This will help you prioritize which to pay off first.
Should I focus on the highest interest rate first?
Yes, focusing on the highest interest debt can save you money in the long run. You might also consider the snowball method for motivation.
What's the snowball method?
The snowball method involves paying off your smallest debts first to build momentum. Once one is paid off, you move to the next smallest.
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