Pay Off Debt Using the Alphabet (ABC Method)

I have been obsessed with podcasts lately! I finally figured out how to download them onto my phone and listen in my car. (No comments from the peanut gallery who’ve been doing this for months or years now, haha). Yesterday morning on my way to work I was listening to an episode of the YNAB podcast that was kind of interesting and I wanted to share it here in case it may help somebody.

First, if you aren’t familiar with YNAB, it’s an acronym for You Need A Budget. YNAB is a program that helps you create a budget and stick to it. I dabbled with the program a little bit but haven’t stuck to it. I tend to prefer good ‘ol-fashioned pen and paper. They also have a podcast I recently discovered that’s filled with tips on budgeting and paying off debt.

This is pretty fitting for me right now considering I’m currently working towards paying off all of our debt.

You Need A Budget (YNAB)

A weekly dose of just the right medicine to help you get out of debt, save more money, and break the paycheck to paycheck cycle.

The episode I listened to was #223 – Deal w/your Debt: Be Strategic. It’s only 5 minutes long but it packed a punch and a strategy for paying off debt that I hadn’t heard of before. Even after doing a quick Google search I got nothing.

Pay Off Debt Using the Alphabet

If you can read, you can follow this strategy to pay off your debt. So simple!

Directions:

• Gather all of your bills/statements for debt accounts (credit cards, student loans, auto loans, etc.)
• Generate a list of all debts you want to include and then…
• Arrange them in alphabetical order either by bank name or store/brand name (for example – Chase offers an Amazon card – so you can alphabetize by A or C)
• Start with the “A” accounts and work your way through the alphabet. As soon as you’ve paid off your first account, focus on the next account that comes up in the alphabet.

I still personally prefer the snowball method but that’s just because I find it easier to manage everything by paying off smaller debts first. The ABC method could potentially be a great option for those who have several credit cards they want to pay off.

You have to do whatever works for you. Use whichever method to pay off debt that helps you stay organized and focused.

You got this!

The post Pay Off Debt Using the Alphabet (ABC Method) appeared first on Lifting Makes Me Happy.

from Lifting Makes Me Happy http://www.buildyourdreambody.com/pay-off-debt-using-alphabet-abc-method.html
via IFTTT