I'm currently in a credit card debt and tried to work on the snowball effect method, but it still did not work. What should I do?

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I don't know how much you owe but I got $11k student debt when I graduated.

The upside was that the economy so bad in 2008 that all banks were requested by the Government to suspended interest charge on study loans:

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What I do to clear my debts:

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1. Work like there's no day no night.

Hustles, side jobs. Eat dabaos.

After 9-5 work go do part-time jobs.

Weekend go helpout at events.

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When you work no day no night, where got time to spend right?

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2. Live like a pauper.

Bring mother go holiday take budget $300 flight to China but take 13 hrs and 2 connecting flights. Poor mom.

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And I cleared the Debt in 13 months.

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3. Question yourself

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Sorry ah, poster. If it's consumer debt, please go and work.

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Don't let the Baby Boomers and Gen Xers be right that you are a strawberry. You got the debt, you suck it up and work your a** off.

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You need a mirror. Don't waste time asking for magic pills in Seedly.

The people here put face put profile and you hide behind anomity to ask questions.

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If the credit card debt came from medical bills you have my sympathy, otherwise, just work it off.

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A bit harsh ah. But you asked what you need to do. Do it.

I'm gonna share the two methods of clearing debts so the audience and readers here may get better context!

• Snowball method (reordering your debt by amount owed and clear the smallest first)
• Avalanche method (reordering your debt by interest % and clear the one with the highest interest first)

In summary, I think in your situation it could be a discipline issue in clearing down your debts while not accumulating more. Because for the snowball method, the goal is to quickly work off you smaller debts before moving on to bigger ones. And for you, would highly recommend cancelling your card immediately or locking it up, to focus on using a debit card to spend (if needed instead). When you get your paycheck, you should allocate almost 80% to clearing your debt and withdrawing th 20% in cash, so you only spend what you can afford!

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You can read more about these concepts here! https://blog.seedly.sg/hacks-to-clear-your-debt...

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Snowball Method:

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Imagine a tiny snowball rolling down a hill. It starts small, but as it rolls down the hill, it adds another layer of snow, growing larger and larger and gaining momentum.

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Pros:

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This method rides on the psychological aspect of human minds. It is satisfying crossing a debt off your list and you get a boost from which.

Snowballing also makes life more convenient. With every debt paid off, one will now have one less payment to remember to make, one less electronic payment to schedule.

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Cons:

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Interest is powerful, and it may work against you. This method requires a high level of discipline too. Given that you free up money quickly, the fate of extra cash lies in your discipline. Will you use it to clear that next bulk of debt or on that shirt you have been eyeing for the longest time?

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Avalanche Method:

1. Also known at the stacking method, list all your debts in order of interest rate, from highest to lowest. This time ignoring the amount of the debt too.
2. Regardless of the amount of debt for each, one will repay as much money as he can for the debt with the highest interest rate. Once each debt is paid, one will move on to the next highest interest rate debt. One will continue doing this until all his debts are cleared.

Pros:

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This method makes the most financial sense. One will be able to reduce the amount he pays due to interest rate when using this method. Minimising such payment as much as possible is the cornerstone of being financially healthy.

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Cons:

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By using this method, it can be rather discouraging since it will take a while to pay off debts. One will not be able to obtain the quick satisfaction of paying something off fast. This method requires an even higher amount of discipline than the previous method.

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All the best in clearing your debt!

Helped a friend work through her debt by taking up another loan with a lower int% (~3%), and clearing off all the ~25% CC debt.

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Still needs discipline to pay off the new loan, but you save quite a bit.