How to Pay Off Debt?

Paying off your debts can become cumbersome, especially when you limit your payments to the minimum amounts. In order to relieve yourself of the burden, you might assume that accelerating and speeding up the debt repayment process is the best way. While it is the quickest and most viable option, here are the best strategies that also help.


Two main strategies are helpful for the main consumer debts and loans. These methods below have relative differences and approach debts in slightly different manners.

Debt-Snowball vs. Debt-Avalanche

You can pay consumer debts, including personal, student, auto loans, credit card balances, and medical bills, with these types of debt repayment methods. However, they are not suitable for mortgage repayments.

It involves a few debt repayment techniques that connect with targeting a single loan at a time and working your way from minimum payments. Further, these debt pay-off methods involve listing all the debts to get a better idea of who and what you owe. Once done with a single loan, you move on to paying off the next one subsequently.

Debt Snowball Method

Assume the debt-snowball method as a “tackling the easiest jobs first” approach. By paying off smaller and more convenient debts, you can make your way up to the bigger loans. You make an ascending order list of the total debts that you owe. Pay the minimum on all but try to squeeze extra payments on the smallest ones that you can. After settling the smallest ones, move onto the next payment.

Pros and Cons

The biggest pro of this approach is that by settling as many small debts as possible, you build intense motivation to get rid of all of them finally. In addition, it is by far one of the easiest ways to repay debts and loans.

The cons of this approach involve a long period before you become debt-free, and it incurs more interest payments on other loans and debts.

Debt Avalanche Method

In this method of debt repayment, you have to pay the minimum on all debt accounts. However, while you pay only the minimum on all accounts, ensure that you use the remaining debt money for the highest interest rate loan. This will help save substantial divisions in terms of interest payments.

Pros and Cons

Reduces the time of debt and significantly cuts down on the interest payments.

On the con side, it requires a constant amount of income throughout the debt repayment period and discipline to pull the technique off.


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