Repayment Strategies

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:

  • Pay off debt with the highest interest rate first
  • Pay off debt with the highest balance first
  • Pay off debt with the lowest balance first
  • Custom strategy where you select the specific order of each debt

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:

  • We always calculate the minimum repayment required for each debt and allocate enough money to cover those if we can
  • We always use the details you provide for any limits on repayments and won’t allocate more money than those to any repayments
  • After we allocate the minimum required repayments to each debt we use any additional amount in the total repayment you specify to pay off the debt with the highest priority based on the strategy you’ve selected
  • As debts in your plan are repaid we automatically move any available money in your total repayment to the remaining debts
  • When you specify a total repayment that is more than your current / minimum repayments we assume that the excess amount of the repayment remains constant if your minimum repayments increase at some point in the future in your plan


This page was last updated on 12 December 2020.