When your debt becomes a thorn in your side, then it's time to come up with methods that'll help clear your debt to zero. 

Debt has the capacity to negatively affect more than just your finances; it'll also hamper your peace of mind. It can disrupt other relationships you have, thereby leading to a spiraling effect of sadness and depression. As such, it's imperative that you take the content of this article seriously, as it'll educate you on how to pay off your debts fast. 

Here are the two most useful debt payment methods: 

1. Debt Stacking 

Debt stacking, more popularly known as debt avalanche, is a debt payment method where you prioritize payment of the debt with the highest interest. The idea is to pay off your most expensive debt so that it no longer burns a hole in your pocket. 

Feel like setting up a debt avalanche, then follow the steps below: 

  • Step 1: Analyze your finances to find extra funds that you can use to pay off your debt 

  • Step 2: Make a list of your debt in order of their interest rate. List them on a spreadsheet or debt payoff chart from the debt with the highest to the lowest interest rate. 

  • Step 3: Pay the stipulated minimum required payment on your debt. Excess cash should be directed into paying your highest interest rate debt. Do this till you've eliminated the debt. 

  • Step 4: Move to the debt with the second-highest rate and pay it off. Keep prioritizing any debt that remains and has the highest interest rate till you've eliminated your debts.

There's more to this method than what's written here; as such, you should visit this article by bestconsolidationloans.com to find out more. After reading through, you'll be able to know if this method is your best bet or you should move on to the next method. 

2. Debt Snowball 

 The debt snowball method involves paying off the debt with the smallest balance first and gradually work your way to the highest debt balance. The excitement that accompanies the early success of paying a small debt balance can help motivate you to pay larger balances. 

If you fancy this debt method, then follow the steps below to use it. 

  • Step 1: Analyze your budget to find ways to cut-out some funds for debt payment. 

  • Step 2: Make a list of your debts from the one with the smallest debt balance to the one with the largest debt balance. A spreadsheet or debt payoff chart is perfect for that. 

  • Step 3: Make the minimum required payment on your debts, and put any extra money into your debt with the lowest balance. 

  • Step 4: After paying off your debt with the lowest debt balance, move to the second smallest balance and keep doing this till you've fully eliminated your debts. 

Which is the best debt payoff method? 

The best debt payoff method is one that works best for you. There's no right or wrong choice; there's only a perfect choice for you. 

If you're the type that requires the extra motivation to make debt payments, then debt snowball is the best for you. But if you want a cost-efficient method, then debt stacking should be your choice. Debt stacking ensures that you prevent high-interest debts from accumulating, thereby creating a possibility of paying less than you'd had naturally done with the other method. 

NOTE: If you find yourself in an undesirable situation where your monthly expenses and debt payments are larger than your income, you should seek some form of debt relief. Who knows, refinancing your auto-loan might be a smarter move than any of the two main debt payoff methods.  

In Summary

Credit card debt loans in the United States are over $1 trillion; this shows that you're not the only one figuring out how to pay your debt. 

Debt stacking and debt snowball methods are the two most prominent methods for paying off debt fast. As such, this article is written to elucidate those two options so that you can choose the most perfect for your situation.