Today we are going to answer the question, “where is the best place to start when paying off debt?” Paying off debt can feel like climbing a mountain, but the right first step can make the journey easier. So, where do you begin? The answer lies in two simple words: a plan.

Start by taking stock of all your debts. Write them down on a piece of paper or in a spreadsheet. Include the amounts, interest rates, and minimum payments for each. This step alone often feels empowering because you’ll know exactly where you stand.

Once you’ve listed everything, choose your strategy. Here are two popular approaches:

The Snowball Method

Focus on paying off your smallest debt first while making minimum payments on the rest. Once the smallest debt is gone, roll that payment into the next smallest debt. This method builds momentum and confidence as you see quick wins.

The Avalanche Method

Attack the debt with the highest interest rate first. This strategy saves you money in the long run since high-interest debt costs more over time.

Still unsure which to choose? Here’s a tip: if seeing progress motivates you, go with the snowball method. If saving money excites you, start with the avalanche.

Remember, paying off debt isn’t just about numbers; it’s about peace of mind. Choose the method that works for you, and celebrate every step forward. With a clear plan, you’ll be on your way to a debt-free life!

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Do you want to find out more about accelerating your debt payoff? Contact us today to learn some tips that can help you to achieve your goal quickly and easily!  

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We also have free tools available! Accelerate Debt Payments Calculator to see which debt option is best for you! 

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