Come up with a plan for paying down your debts. Review your finances thoroughly, crunch the numbers, and see which method of making payments will be the most effective for your situation.
- Work on paying down the debt with the highest interest first, while making minimal payments on everything else. This is sometimes called "laddering" your debt, and helps the borrower feel more actively in control of the debt.
- If the interest rates are similar for your debts, pay off the one with the lowest balance first. This is sometimes called "reverse laddering," which allows you see your progress faster, and will make you feel good after each smaller debt is paid off.
