Debt Payoff Strategies
There are two math-backed ways to pay off debt — and one psychology-backed way. The right answer is whichever you'll actually finish.
Snowball: smallest balance first
List debts smallest to largest. Pay minimums on all, throw every extra dollar at the smallest. When it's gone, roll its payment into the next one. Wins on motivation; loses a little to interest.
Avalanche: highest APR first
Same setup, but ordered by interest rate. Mathematically optimal — saves the most money. Works best when your highest APR is also a meaningful balance.
Consolidation
Refinancing multiple high-rate debts into one lower-rate loan can save thousands if your credit qualifies. Watch origination fees and don't run the old cards back up.
Which to pick
If you have 5+ debts and need motivation, run snowball. If your highest-APR debt is also your biggest balance, run avalanche. If your credit is 670+, get a consolidation quote first.
Questions
Frequently Asked Questions
Clear answers to common questions before you compare loan options or apply.
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Reviewed by Jeff Arlintogs. See our fact-checking policy.