Paying Debt Down

Methods to Pay Down Debt

Not sure where to start with debt repayment? Two popular methods, debt avalanche and debt snowball, can help. First, list all of your debts, interest rates, and amounts owed. Then, choose the method that suits you best.  

Avalanche Debt Method

1. List debts by highest to lowest interest rate. 

2. Pay minimum on all debts, but put extra funds toward the highest interest debt.

3.Once the top debt is paid off, apply its payment to the next highest interest debt. 

4. Repeat until all debts are cleared.

This method saves the most on interest yet will take longer to see progress.  

Read more about the avalanche payment plan and calculate your payoff using this method.  

Snowball Debt Method

1. List debts from smallest to largest amount owed.

2. Pay minimum on all debts, but put extra funds toward the smallest debt. 

3.Once the smallest debt is paid off, apply its payment to the next smallest debt. 

4.Repeat until all debts are cleared. 

This method offers quick wins to keep you motivated. 

Read more about the snowball debt method and calculate your payoff using this debt method.  

Celebrating the Victories

Paying down debt is challenging, so celebrate each victory. Share your victories, small or large, with us!