Magic Words That Will Save You $$$

Things Work Out

Nathan Rabin, a former head writer for the A.V. Club, has a really terrific essay in The Mental Illness Happy Hour about the time he racked up $36,000 in debt traveling around the country doing research for his book, decided to use a debt consolidation program when he felt the debt reached an “impossible and unmanageable level” and then got sued by American Express after he stopped making payments.

How to Borrow from Your 401(k) to Pay Off Your Debt

I’ve read the snowball vs. avalanche method of paying off debt, and I figured I’d tell you about my own personal method—or at least, the one that I’ve used a couple of times over the last few years that has helped me tons. This method requires that you’ve been saving for retirement via a 401(k).

Paying Off Your Debt: The Snowball Plan vs. The Avalanche Method

When people make an effort of paying off their debt, they usually try one of either two methods: the “snowball” method, or the “avalanche” method. Let’s get into both, and then talk about which one might work better for you.