Whichever method you choose, the first thing you need to do is come up with a plan of how much you want to pay out each month. Davinia recommends using a spreadsheet for this, but the most important thing is that you find a way to monitor your progress that works for you.
“Either way, you still need to meet your minimum payments for all of your other sources of debt each month,” Davinia adds, although your focus should be on either your largest or your smallest source of debt, depending on which method you choose.
Davinia recommends choosing a strategy and sticking it out for three to six months. After this point, you can reflect on your progress to see if the method worked for you, particularly considering your way of thinking and emotional wellbeing. If it wasn’t effective, it might be worth trying the other technique for the same amount of time to see if it actually works better for you.
“This is also a good time to think about it, as your financial situation may have changed – you may have got a new job or a promotion. While the snowball method may previously have been your only choice, now the avalanche method may be a viable option for you, ”says Davinia.
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