The snowball method. This well recognised method involves listing all of your debts, from the smallest debt first, regardless of the interest rate it attracts.
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Moving through the list, start by paying off the smallest debt, then move to the next biggest debt and pay that off, and so on. As debts are paid off, you cut up credit cards and close accounts.
This debt strategy continues while meeting all of your commitments and making minimum payments on other debts at the same time. The thinking here is that debt repayment gains momentum as smaller debts are paid off.
The avalanche method. This equally well-known method involves paying off the most expensive debts first. These are the debts that attract the highest rates of interest,…
