A practical guide to ending debt in 2021

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Paying off debt is a good goal to have in 2021. Despite all the challenges during the past year, working towards financial stability is doable with the right strategies. The team at Brennan & Clark shares some tips for ending and managing debt this year.

Go for auto-debit options

Instead of having to take out the amount needed for debt settlement every payday, one can spare themselves the stress by signing up for auto-debit transactions. This will also allow debtors to send the payment on time and to make sure that the amount will be used to finish their debt.

Do the snowball method

This method involves paying off the debt with the smallest amount first while making minimum payments for larger accounts. After finishing the smallest debt, one can move on to the next one until all are completed. According to the team at Brennan & Clark, this strategy might be helpful to many, as seeing debts settled one by one will motivate them to keep on paying until they attain financial freedom.

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Know where to use cash windfalls

Bonuses and extra income should be used wisely. Instead of putting all in savings or using the extra cash to buy something luxurious, one should first consider their debts. While it's understandable to use some of the money for personal use, one should set aside a reasonable amount that will go to debt payment.

Brennan & Clark is a business collections firm that has been operating for over 30 years. The experience and expertise of its staff enable the company to guarantee higher recovery rates than the industry average. For similar reads, visit this blog.