Debt Relief

‘Debt Crushing’ a Top Priority in 2020

Becoming debt-free is a popular resolution in the New Year. As people are coming off the holidays, they often have larger credit card bills coming due. Approximately 7 in 10 people have at least one credit card.  More than half of the cardholders already in debt were willing to put gifts and holiday expenditures on credit cards, according to

Snowball or avalanche method

What is the best way to pay down debt?

The snowball method involves looking at all your debts and picking the one with the smallest balance. Ignore the interest rate and type of debt. Choose the smallest amount and put all your resources into paying that off. While doing so, keep up with the minimum payments on all your other debts. The theory is that aggressively attacking the smallest amount will allow the individual to see immediate results, which then kicks motivation into high gear.

In the avalanche method, take inventory of your debt- meaning you need to write down all outstanding debts- including credit card balances, student loan payments, car payments, etc. and determine the interest rates you are paying on each of the balances. The debt avalanche strategy begins by ranking your debts by interest rate, highest to lowest. Dedicate any extra resources to the balance that has the highest interest. All other balances get the minimum payment. When the highest one is paid off, start paying off the next highest. No matter the size of the loan balance, it will always be less expensive (and faster) to pay off your debts in order from highest to lowest interest rates.

Another snow-themed strategy, the blizzard method combines the avalanche and snowball method.  Put your debts in size order.  Use the snowball method to give yourself a burst of motivation by paying off the smallest debt, then switch to the avalanche method to attack your remaining balances. Come up with a regular reminder to inspire you to keep attacking your debt.

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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at

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