Choose the best approach to eliminate your debt

Strategy-Based Debt Overview

Untitled

<aside> <img src="/icons/flash_blue.svg" alt="/icons/flash_blue.svg" width="40px" />

Debt Snowball Strategy

Pay minimums on all debts, then put extra money toward the smallest balance first

Untitled

Pros:

• Quick wins build momentum
• Psychologically motivating

Cons:

• Costs more in interest
• Less mathematically efficient </aside>

<aside> <img src="/icons/chart-line_red.svg" alt="/icons/chart-line_red.svg" width="40px" />

Debt Avalanche Strategy

Pay minimums on all debts, then put extra money toward the highest interest rate debt first

Untitled

Pros:

• Saves the most money in interest
• Mathematically optimal

Cons:

• May take longer to see progress
• Requires discipline </aside>

<aside> <img src="/icons/target_green.svg" alt="/icons/target_green.svg" width="40px" />

Debt Consolidation Strategy

Combine multiple debts into a single loan with a lower interest rate

Untitled

Pros:

• Simplified payments
• Potentially lower interest

Cons:

• May extend repayment period
• Requires good credit </aside>