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How Snowball Payments Can Eliminate Your Revolving Debt Faster

One of the best places to start when tackling credit card debt for the purpose of debt relief is to create some form of budget calculator or some form of financial planning device. This can be a great way to understand income vs expenses, while brushing up on your money management skills.

While there are many budget and money management apps out there these days, these are often incomplete, or missing the insights of trained professionals that are capable of helping you navigate debt consolidation through the sometimes subtle nuances of payment cycles and strategy.

A New Way to Understand The Debt Relief Process

With that in mind, Golden Financial Services recently rolled out a couple new ways to help you tackle daily expenses with a straight forward debt review process! The budget calculator can help with car loans and credit card debt, and our new snowball calculator details how to pay off debt (if you’re looking to understand your total debt before comparing it to your budget, click here).

Snowball payments work by paying off the credit card debt with the smallest balance first, followed by the next smallest balance, and as you pay off each card, you start accruing extra cash flow. This is known as snowball debt payments, helping your credit score improve, while also helping you save towards retirement as the national social security fund begins to disappear. The budget calculator and the snowball calculator work hand-in-hand to help you conceptualize your goals and get moving towards accomplishing them!

One final method is detailed here:

One of the most effective ways to get out of debt is by choosing to make payments in one of either the snowball or avalanche methods. This method fights the instincts to pay over your minimums on all cards for the purpose of paying more towards the principal balance. Even if you understand that paying the principal down saves money on interest because interest is compiled in each pay period, that doesn’t mean you should spread it around! Putting all of your extra cash flow or funds into the principal of one credit card first will ultimately help you pay off your debt faster. It also adds security for a rainy day because you now have a credit card with more than usual space on it compared to your others.

If you are already behind a couple payments on multiple credit cards, you might want to look into credit card debt relief programs that will help you with interest rate reduction while plotting a course to get you out from under crippling late fees and credit score adjustments.

How Debt Settlement Differs from Debt Relief

Different from relief programs are debt settlement programs, where a compromise between you and your creditors is made. You will receive a reduced amount to pay back, but there are strings attached. We detail those to help you, so you have a firm understanding of how to manage this solution!

As you can see, Golden Financial Services is your one-stop-shop for all debt relief related information and assistance.

Let’s see what the experts can do to help you! You can speak with an IAPDA Certified debt relief counselor at 858-605-6196 for free.

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The information contained in this website is for general information purposes only. The information is provided by Golden Financial Services (https://www.GoldenFS.org) and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website. Through this website you are able to link to other websites which are not under the control of Golden Financial Services. We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them. Every effort is made to keep the website up and running smoothly. However, Golden Financial Services takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

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