You’ll do better at repaying debt if you have a strategy you follow.
There are some very common debt repayment strategies to choose from. There are also some less common and more complex ones you may be able to find if you do some research.
The debt repayment strategies you can choose to use in the MoneyBrilliant app are:
The strategy you choose determines the order in which debts are repaid and it will affect how much interest you pay, how much you pay in fees and when your debts will be repaid.
Paying off debt with the highest interest rate first will cost you less in interest and fees and you will pay off your debts faster.
Paying off debt with the lowest balance first will give you the psychological benefit of seeing some debts completely paid off sooner than might happen with other strategies.
If you need to you can set a custom strategy and define the exact order in which each debt is repaid.
Ultimately you need to choose the strategy that will work best for you.
Regardless of which strategy you choose some things remain the same:
This page was last updated on 12 December 2020.