The Debt Avalanche Method: The Mathematically Correct Way to Get Out of Debt
There are two schools of thought on paying off debt. One feels better. One costs less. They are not the same school, and confusing them has cost people thousands of dollars in unnecessary interest. This post is about the one that wins mathematically: the debt avalanche method. Not sure which approach fits your situation? Start […]
How to Build Business Credit From Scratch (Even If Your Personal Credit Is a Mess)
Most small business owners do not know this: business credit and personal credit are completely separate systems. Different bureaus, different scoring models, different data sources. What is on your personal credit report has no bearing on your business credit file, and vice versa. That means two things. First, even if your personal credit is damaged […]
The Debt Snowball Method: Why It Works Even If It Costs More
The debt avalanche method is mathematically superior. If you run the numbers on two identical debt loads, the avalanche will always produce a lower total interest cost. That is simply true. Here is what else is true: most people do not finish the avalanche. They start it. They are disciplined for a few months. Then […]
How to Negotiate a Debt Settlement (Without a Middleman Taking 25%)
Debt settlement companies charge 15 to 25 percent of your total enrolled debt. On a $30,000 debt load, that is $4,500 to $7,500 in fees, paid to a company for making phone calls you could make yourself. The calls are not complicated. The script is not secret. The process is entirely replicable by anyone willing […]
Net-30 Vendor Accounts That Report to Dun and Bradstreet
The fastest way to build a Paydex score is net-30 vendor accounts. Open an account with a supplier, buy on 30-day terms, pay on time, and they report your payment history to the business credit bureaus. That reporting is what builds your D&B file. Here is the problem: not all net-30 accounts report. Many vendors […]
Debt Consolidation vs Debt Settlement: What’s the Actual Difference?
These two terms get used interchangeably in late-night ads and desperate Google searches, but they are completely different strategies with completely different outcomes. Choosing the wrong one for your situation can set you back years. Choosing the right one can save you thousands. The short version: consolidation reorganizes debt you intend to pay in full. […]
The Tools and Resources DevourDebt Actually Recommends
There are thousands of apps, services, and resources claiming to help with debt and personal finance. Most are mediocre. Some are expensive for what they deliver. A meaningful number are primarily trying to sell you a product you do not need. We have no interest in recommending those. This is the list of tools and […]
What Happens If You Only Pay the Minimum Every Month (The Real Math)
The minimum payment exists to keep you in debt. That is not a conspiracy theory; it is a business model. Credit card issuers discovered decades ago that setting minimum payments low enough to feel comfortable would maximize the total interest collected from cardholders over time. The minimum is not designed to help you get out. […]