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Debt Repayment

Financial Education

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Which Debt Repayment Strategy Is Right For You?

Consumer debt is an extremely contradictory part of our personal finances: it’s at once common and incredibly personal. According to numerous sources, the majority of US adults owe money in some way, shape or form—and yet what this consumer debt represents can vary drastically from person to person. To some, a debt might signify a major accomplishment or progress toward a large goal. To others, it might be a constant reminder of a time of crisis or hardship. The decisions that lead us to consumer debt can be thoughtful and deliberate, or rushed and misguided. It is perhaps these differences that make it challenging to talk openly about debt for fear of judgment. Check out the video below as Jen meets with the Debt Yeti to find out more about debt repayment strategies.

High-interest debt is stressful and expensive—paying it off should be a financial priority. List the balance, the interest rate and the minimum payment for each of your debts, then consider the following strategies for paying them off:

The Snowball Method

This strategy is great for beginners. While not the most powerful, the ability to quickly cross debts off your list (even if they are the smallest ones) can give you a strong motivational boost.

The Avalanche Method

Mathematically speaking, this strategy is the most powerful. It also requires discipline and determination, as your most expensive debt may also have a larger balance.


If you're having trouble keeping track of various payment dates, this strategy is a good solution. Factor in the new interest rate and any additional fees before choosing this option.

strategies for debt repayment

Learn more about the best strategies for debt repayment by clicking the handout above.

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