There are a few methods to pay off your debt quickly. While each has its pros and cons, choosing comes down to your personal preference.
With the debt snowball method, you make the minimum payment on all debts, except the one with the smallest balance. With this bill, you’ll pay as much as possible. Once you pay off this debt, you move on to the next lowest balance, repeating until you’ve paid off all your debt. This approach won’t save on interest fees, but it motivates you to stay on track.
With the debt avalanche method, you make the minimum payment on all debts, except the one with the highest interest rate. With this bill, you’ll pay as much as possible. Once you’ve cleared this debt, you’ll move on to the next highest interest rate. Again, you’ll repeat this process until all debt is paid off.
In the following infographic, learn more about these debt payoff methods.
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Co-founder and Vice President of SearchRank, responsible for many of the day to day operations of the company. She is also founder of The Arizona Builders’ Zone, a construction / home improvement portal.
