Lets continue the debt discussion since it’s such a large part of peoples lives nowadays.

Ever feel as if there is no end in sight to all those piled up bills? Here are 2 plans that may help you get your finances back on track.

1. Snowball Plan: The snowball plan developed by Dave Ramsey focuses on ranking your accounts by balance amount, smallest to largest. Consumers are encouraged to pay the smallest debt first while continuing to pay the minimum amount on the other accounts. By doing so consumers enjoy the satisfaction of when debt drops off, thus they are more likely to make continuous payments.

2. Negative Emotion: The negative emotion plan urges people to pay bills that generate a negative emotion. For example, Shareef Defrai from Huston used his credit card to rent a car for a friend. No big deal until his friend decided to skip town with the car, now Shareef has $16,000 in debt for a car he doesn’t even have possession of. By paying off these types of accounts first the relief of paying off the debt can be life changing.

Both methods have their pros and cons, do any of you have a special way you pay down your debt?