List every balance and rate
Clarity comes before a payoff plan.
- ✓Write each creditor, balance, minimum due, and interest rate.
- ✓Mark which accounts can hurt your credit if missed.
- ✓Set calendar reminders for payment dates.
Managing debt is easier when you see the full picture. These tips help you prioritize payments and avoid costly surprises.
Snowball or avalanche
Two proven ways to attack multiple debts.
- ✓Snowball: pay smallest balances first for quick wins.
- ✓Avalanche: pay highest interest first to save money.
- ✓Always pay at least the minimum on every account.
Avoid stacking new short-term debt
Borrowing to cover borrowing can spiral quickly.
- ✓Pause new non-essential purchases while you catch up.
- ✓Talk to creditors before accounts go to collections.
- ✓If you need a bridge loan, have a clear repayment date.