Medicare Changes for 2026

Best Ways to Reduce Your Debt

Here’s the best way to pay off credit card debt for most people, broken down into simple, doable steps:

✅ 1. Use the Debt Snowball Method (Best for Motivation)

This method comes from Dave Ramsey and works wonders for staying motivated.

• Step 1: List all your credit cards from smallest balance to largest, ignore the interest rate for now.

• Step 2: Pay minimums on all cards except the smallest.

• Step 3: Throw all extra money at the smallest debt until it’s gone.

• Step 4: Roll that payment into the next debt, and repeat the process.

This builds momentum — quick wins keep you going 💪

🔥 Alternative: The Debt Avalanche Method (Best for Saving Interest)

• List your debts by interest rate (highest first).

• Focus on paying off the highest interest one first while making minimums on the rest.

You’ll save more money long-term, but it can feel slower in the beginning.

💡 BONUS STRATEGY: Refinance High-Interest Credit Card Debt

If you own a home, you may be able to refinance your mortgage or use a Home Equity Line of Credit (HELOC) to:

• Pay off your credit cards all at once

• Get a much lower interest rate (vs. 20–30% on cards)

• Make just one lower monthly payment

👉 This strategy can save hundreds per month — but it depends on your equity, credit score, and current mortgage.

Ever wondered how much your home is truly worth and what that means for your financial wellbeing?

Your house may be your greatest asset, quietly building wealth through home equity over time.

Home equity is simply the difference between your property’s current value and what you still owe on the mortgage.

For example, if your home is valued at $500,000 but you owe $200,000, you hold $300,000 in equity.

Across the U.S., the average homeowner with a mortgage has nearly $307,000 in equity.

This grows as home prices rise and mortgage payments chip away at your loan balance.

Understanding home equity matters—it can help fund a new home, renovations, or consolidate debt.

A trusted local real estate expert can analyze your property’s market value and help guide your next move.

Keeping track of your home’s value ensures you’re making the most of your largest investment.

Q: What are the benefits of contributing to a 401(k) plan for retirement?

A: Employer match contributions, tax-deferred growth, and automatic deductions for savings.

Q: How can I supplement my retirement income if I don't have enough savings?

A: Consider part-time work, rental income, or downsizing your home to lower expenses.

Q: What is a Roth IRA and how does it differ from a traditional IRA?

A: A Roth IRA allows tax-free withdrawals in retirement, while contributions are made with post-tax dollars. Traditional IRA contributions are made with pre-tax dollars but withdrawals are taxed in retirement.