Fastest Way To Pay Off Debt

August 15, 2009 · Filed Under Getting Out Of Debt

According to many financial experts there are several ways to pay off debt. However when it comes to the fastest way to pay off debt then there are two different methods that people say works best.

One of the methods that they discuss is pay down the bills that have the highest interest rates. The other is to tackle the smallest bill first; once you pay that one off then you take that payment and put it on the the next smallest bill until eventually you get everything paid off.

Both ways are going to help you pay off your debt and they could be considered the fastest way to pay off debt. If you are unfamiliar with how to use these methods; then we will explain exactly what it takes to begin using the process:

Paying Off Highest Interest Rates First:

Gather your bills and find out which one has the highest interest rate.

Commit to paying no less than the minimum due.
If possible try to add some extra to the minimum balance.
Keep paying on it until the debt is wiped out.
Then move to the next bill that has the next highest interest rate.
Take the money that you were paying on the first bill and apply it plus the minimum balance to that next bill.
Keep moving up to the next highest bill once you are done paying the next bill.

Eventually you will find that you have finished paying off your debts.

Paying Off Lowest Balance First

This method is the most popular method and many people say that they prefer this method best.

Pick the bill that has the lowest balance.
Commit to paying the minimum and as much extra as you can comfortably afford.
Once that bill is paid off then you move up to the next lowest balance bill.
Take the money from the first bill and apply it to the next bill along with the minimum payment.
Keep repeating the process until all your debts are paid off.

If you follow either of these steps then you will know that these are the fastest ways to pay off debt and they do work. Either one will work for you and you can decide which one is right for you. In fact to find out what you can do to avoid bankruptcy and get out of debt Click Here.