Trick Yourself Out of Debt
As this
tragic story demonstrates, debt can have
life-shattering consequences. Seriously, follow that link and read
the story. I’ll wait here.
Done? OK, welcome back! Pretty somber stuff, huh?...
For all the talk about money—how to save it, how to manage it, how to invest it,
how to pay off your debt, which app is best to help you stick to a budget—there is very, very
little talk about the emotional side of money. And that’s a topic
that we obviously cannot continue to ignore!
You may have heard of the so-called ‘debt
snowball’ method: pay off the debt with the lowest amount owed;
once that’s paid off, put that extra money toward the next smallest
debt, and so on.
Some people take issue with this, since it’s
more productive to put your money toward the debt with the highest
interest payment first—the so-called ‘debt
avalanche’ method. Advocates of the debt avalanche often fail
to understand why people would use the obviously inferior debt
snowball method instead.
