Guides ยท Finance

Debt Paydown Strategies Basics

Pick avalanche or snowball

Paying down debt can prioritize highest interest (avalanche) to minimize cost, or smallest balances (snowball) for motivation; either requires a budget, autopay above minimums, and avoiding new debt.

Choose Method

Avalanche for least interest; snowball for quick wins.

Automate

Autopay above minimums on target debt; pay minimums on others.

Prevent Slips

Pause new debt; adjust budget to stay on track.

Related Terms