Two repayment strategies
- Avalanche: focus on the debt with the highest rate first. Costs the least total interest.
- Snowball: pay off the smallest balance first. Debts disappear one by one quickly, which is very motivating.
With both, always make the minimum payment on every debt and put any extra toward one priority debt. When one is paid off, roll its payment into the next.
Do this first
- If any debt is overdue, fix that first. Late interest and credit damage are the most expensive.
- For high-rate debt like cash advances, card loans and private lenders, check whether you can switch to a lower rate (refinancing calculator).
This calculator gives estimates based on published laws and criteria and is not legal advice. Before acting, be sure to check with the official agencies below.