2 minute read
In today's society, debt has become a way of life for many individuals and families. Whether it's credit card debt, student loans, or a mortgage, being in debt can be a stressful and overwhelming experience. Fortunately, there are strategies you can use to pay off your debt faster and regain control of your financial situation.
One of the most powerful tools available to help you achieve this goal is a debt payoff calculator. Our free calculators can help you find the best way to pay off your debts. Consider the different pay down strategies highlighted below to help reduce your debt.
Snowball method
The snowball repayment method consists of listing all your debt balances and tackling them from smallest to largest depending if the interest rates are the same. This method prioritizes balances as you move on to the larger ones next. This helps build momentum and motivation by settling debts faster.
Avalanche method
With the avalanche payoff strategy, you focus on repaying debts based on their interest rates. This method prioritizes interest rates and paying off debt with the highest interest rate first. You move on to the next highest interest rate debt after the first is paid off. This helps you pay less interest over time.
Balance transfer credit card
After comparing credit card interest rates consider a balance transfer and moving existing balances from multiple credit cards into a new card with a 0 percent introductory APR.
Debt consolidation method
A debt consolidation loan if interest rate is more favourable than current debt interest rate, payoff schedules.