Debt repayment methods explained
Different repayment methods change the order in which balances are targeted. The right approach depends on the debts and constraints that apply to you.
One-balance-at-a-time approaches
Some methods concentrate extra payment on a selected balance while maintaining required payments on others.
Interest-focused approaches
One common approach directs extra payment toward the balance with the highest interest rate, which can reduce interest in a mathematical model.
Behaviour-focused approaches
Another approach can prioritise the smallest balance first to create visible progress. This is a strategy description, not a recommendation.
Use actual debt terms
Fees, rates, minimums and payment timing should come from the actual statements and agreements.
Time-sensitive rules should be checked against the current official source and the applicable date. This page is intended as general educational information.