Debt Avalanche: This strategy involves paying off debts with the highest interest rates first, regardless of the balance. It saves you the most money on interest over time.
Debt Snowball: This strategy focuses on paying off the smallest debt first, then rolling that payment into the next smallest debt. It provides psychological wins and motivation, though it may cost more in interest.
Consistency is Key: Regardless of the strategy you choose, consistency in making extra payments is the most important factor for accelerating your debt payoff.
Emergency Fund: Build a small emergency fund (e.g., $1,000) before aggressively paying down debt to avoid going back into debt for unexpected expenses.
Negotiate Rates: Consider calling your creditors to see if you can negotiate lower interest rates, especially on high-interest credit cards.