Debt Detox 2: Smart Strategies to Pay Off Debt Faster

Part 2 in the Debt Detox Series
At Friendship State Bank, we believe financial sustainability starts with a solid plan. Whether you're just beginning your debt repayment journey or refining your approach, we’re here to help. Explore two proven strategies—the Debt Snowball and Debt Avalanche methods—to find the one that fits your financial goals.
This strategy is perfect if you thrive on seeing immediate progress. The Debt Snowball method focuses on tackling smaller debts first to gain confidence and momentum.
List Your Debts by Balance
Arrange your debts from smallest to largest, ignoring interest rates for now.
Make Minimum Payments
Continue making minimum payments on all debts except the smallest.
Put Extra Funds Toward the Smallest Debt
Direct any additional money toward paying off the smallest debt.
Celebrate and Move to the Next Debt
Once the smallest debt is cleared, shift your focus to the next smallest.
The Debt Snowball approach provides a psychological boost as debts disappear, helping you stay motivated to stick with your plan.
If saving money in the long term is your priority, the Debt Avalanche method might be the better choice. This approach focuses on minimizing the total interest you’ll pay.
Organize Debts by Interest Rate
List your debts from the highest to the lowest interest rate.
Make Minimum Payments on All Debts
Ensure you’re staying current on all accounts.
Apply Extra Payments to the Highest-Interest Debt
Direct any surplus funds to the debt with the highest interest rate.
Tackle the Next Debt on the List
After paying off the highest-interest debt, move on to the next.
While it might take longer to fully pay off a balance, the Debt Avalanche method reduces the overall cost of your debt.
Each method has its advantages:
The best choice depends on your financial priorities and personality. At Friendship State Bank, our expert lenders are here to help you assess your situation and create a plan tailored to your needs.
Managing debt can be overwhelming, but you don’t have to face it alone. At Friendship State Bank, our team is dedicated to helping you achieve your financial goals.
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