In this episode, Hazel explores effective strategies for managing and eliminating debt, focusing on two popular methods: the Debt Snowball and Debt Avalanche techniques. The Debt Avalanche method prioritises paying off debts with the highest interest rates first, ultimately saving money on interest payments and reducing the time needed to become debt-free. 

KEY TAKEAWAYS

• Debt Repayment Strategies: There are two primary methods for managing debt: the Debt Avalanche method, which focuses on paying off the highest interest debt first, and the Debt Snowball method, which targets the smallest debt first. Each method has its own advantages and disadvantages.
• Importance of Minimum Payments: Regardless of the chosen method, it's crucial to make minimum payments on all debts except for the one being targeted. Setting up automatic payments can help ensure that these minimums are met consistently.
• Pros and Cons of Each Method: The Debt Avalanche method can save money on interest and reduce the time to become debt-free, but it requires discipline and commitment. In contrast, the Debt Snowball method can provide quick wins and motivation by eliminating smaller debts first, though it may result in paying more interest over time.
• Debt Consolidation Option: Consolidating debts can be a beneficial strategy, especially if one has equity in their home. By refinancing at a lower interest rate, individuals can potentially reduce their overall interest payments and simplify their debt management.

BEST MOMENTS
"The Debt Avalanche method means you pay off the highest interest debt first, while the Debt Snowball method has you pay off the smallest debt first."

"Using the Debt Avalanche method will save you the most in interest payments as you go along."

"The snowball method can give you that motivation to settle your debts faster and see accounts closed down much quicker."

VALUABLE RESOURCES

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ABOUT THE HOST

Having started her career as a professional, classical musician, Hazel de Kloe also had a personal quest to become financially free. 

She and her husband built a successful, multi-million-pound property business, next to their own careers, but soon realised that true freedom doesn’t JUST come from being financially independent…

Having meant so much to her family, it has been her passion ever since, to inspire, educate and empower others on their journeys towards this 'Holy Grail'. 

During one particular property mentoring session back in 2009, she had a powerful recognition of exactly how to facilitate this. Nicknamed now, The Wealth Whisperer, she has a unique way of getting to the crux of what is needed to help fulfil this quest.

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