Debt Snowball
Make a list of all your debts and while making the minimum payment on all of them add a little extra to pay off the smallest debt first. Then, shift money to that next smallest debt. Then keep snowballing until all the debts are paid. Now, in blended families it's more complicated. Say one spouse has more debt than the other. The snowball is paying off all their debt. That may not feel fair. So, it's okay to make adjustments to the plan because building trust is your most important investment.
Show Notes
About the Guest
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Make a list of all your debts and while making the minimum payment on all of them add a little extra to pay off the smallest debt first. Then, shift money to that next smallest debt. Then keep snowballing until all the debts are paid. Now, in blended families it's more complicated. Say one spouse has more debt than the other. The snowball is paying off all their debt. That may not feel fair. So, it's okay to make adjustments to the plan because building trust is your most important investment.
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Ron Deal
Ron L. Deal is one of the most widely read and viewed experts on blended families in the country. He is Director of FamilyLife Blended® for FamilyLife®, founder of Smart Stepfamilies™, and the author and Consulting Editor of the Smart Stepfamily Series of books including the bestselling Building Love Together in Blended Families: The 5 Love Languages® and Becoming Stepfamily Smart (with Dr. Gary Chapman), The Smart Stepfamily: 7 Steps to a Healthy Family, and ...more
Hit debt with a snowball.
Ron: Hit debt with a snowball.
Announcer: For FamilyLife Blended®, here’s Ron Deal.
Ron: Maybe you’ve heard of the debt snowball. Make a list of all your debts, put them in order from smallest to largest and while making the minimum payment on all your debts add a little extra to pay off the smallest debt first. Then, you shift money to that next smallest debt. When the second debt is paid off, you shift it to the third one. Then keep snowballing until all the debts are paid.
Now, in blended families it’s more complicated. Say one spouse has more debt than the other. The snowball is paying off all their debt. That may not feel fair. So, it’s okay to make some adjustments to the plan because building trust after all is your most important investment. For FamilyLife Blended, I’m Ron Deal.
Announcer: To find out more visit familylifeblended.com.
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