02-03-2024, 03:39 PM
Managing multiple loans with limited income requires a strategic approach. Prioritize loans from highest to lowest, focusing on paying off the smallest debt first, such as a credit card loan. Once the smallest loan is repaid, allocate the freed-up funds to the next smallest loan. This method, known as the debt snowball, not only reduces the number of loans but also provides psychological satisfaction. The process continues until all debts are paid off, offering a systematic path to becoming debt-free.