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Complete Debt Payoff Guide
Your comprehensive resource for understanding debt repayment strategies and creating a personalized plan to become debt-free.
Start Your Debt-Free Journey
Use our free calculator to create your personalized payoff plan
Calculate My PlanUnderstanding Your Debt
Before choosing a payoff strategy, it's important to understand what types of debt you have and how they work:
Types of Debt
- Credit Card Debt: High-interest revolving debt that should be prioritized
- Personal Loans: Fixed-rate installment loans with set payment schedules
- Student Loans: Education debt that may have special repayment options
- Auto Loans: Secured loans backed by your vehicle
- Medical Debt: Healthcare-related bills, often negotiable
Two Proven Payoff Methods
Debt Snowball Method
Pay off smallest debts first for psychological wins and motivation. Best if you need encouragement to stay on track.
Learn More →Debt Avalanche Method
Pay off highest-interest debts first to save maximum money. Best if you're disciplined and want optimal results.
Learn More →Creating Your Debt Payoff Plan
Follow these steps to create an effective debt repayment strategy:
- List all your debts with balances, interest rates, and minimum payments
- Calculate your extra payment capacity - how much beyond minimums can you pay?
- Choose your method - snowball for motivation or avalanche for math optimization
- Use our calculator to see your exact payoff timeline
- Automate payments to stay consistent
- Track progress monthly and adjust as needed
Finding Extra Money for Debt Payoff
Even small increases in your monthly payment can dramatically reduce payoff time:
- Cancel unused subscriptions
- Reduce dining out expenses
- Sell items you no longer need
- Pick up a side gig or freelance work
- Use windfalls (tax refunds, bonuses) for debt
Common Mistakes to Avoid
- Only paying minimums (keeps you in debt longer)
- Taking on new debt while paying off old debt
- Not having an emergency fund (leads to more debt)
- Ignoring high-interest debt
- Not tracking progress regularly