FAQ Articles For General Debt Questions
What is the hybrid (debt ratio) payoff plan?
Created March 12, 2021 - 23,992 ViewsThe idea behind the Debt Hybrid (Debt Ratio) plan is to bring together the best parts of the snowball and avalanche payoff methods so that you can pay debts off quickly and effectively while at the same time maintaining your motivation. The snowball debt payoff method is popular because it allows y...read more
What is the cash flow index (CFI) payoff method?
Created March 9, 2021 - 17,226 ViewsThe Cash Flow Index (CFI) payoff method is a way to identify the debts that have the most impact on your cash flow and pays those off first. By prioritizing these debts, you can free up cash and cut down on required monthly payments. This plan appeals to people who value the flexibility of lower mon...read more
How do I choose which debts to pay off first?
Created March 6, 2021 - 15,231 ViewsIn general, the best way to decide which debt to payoff first is to start with the debt with the highest interest rate and work your way down from there. From a purely mathematical standpoint, the debt avalanche (highest interest rate first) payoff method is the most effective way to pay down debt. ...read more