Debt is leverage running in reverse. The faster you shrink the balance, the less interest gets to compound against you. These seven tactics are ordered by impact, not popularity.
Google this topic and you will get a hundred answers, half of them wrong. Here is the version that holds up. Debt is leverage running in reverse. The faster you shrink the balance, the less interest gets to compound against you. These seven tactics are ordered by impact, not popularity.
List every balance, APR, minimum payment and due date in one sheet. You cannot beat what you have not measured.
Avalanche (highest APR first) saves the most money. Snowball (smallest balance first) builds momentum. Pick the one you'll stick with.
Half-payments every two weeks add up to 13 monthly payments a year — one full extra payment, free.
A 24% credit card rolled into a 12% personal loan halves the interest. The savings compound from day one.
One $500 weekend sale can wipe a month off a 24% balance. Sentimentality is expensive.
Pay the minimum on a $5,000 card at 22% and you'll take 18+ years to clear it — paying over $7,000 in interest alone.
Should I save while paying off debt? Keep a $1,000 starter emergency fund, then funnel everything to debt above ~7% APR. Below that, balance saving and repaying.
Does paying early hurt my credit? Slightly and temporarily. Long term, a lower utilisation ratio raises your score.
If you only remember one thing from this post, make it that the inputs matter more than the calculator.