Asked anonymously

What's the fastest way to cut my debt by 50%?

Report Question Report

  Leave Answer

Sign in to MoneyTips
By submitting you agree to our Terms of Service

  Answers  |  2

November 20, 2017

Here's a helpful article about the Best Debt Repayment Method, it should get you started on the right path. Good luck!

$commenter.renderDisplayableName() | 10.01.20 @ 23:07


November 21, 2017

I’m guessing there’s more to your question than what we see here. The fastest way to cut your debt by 50% is to pay off 50% of your debt. In fact this is the only way to cut / reduce your debt. My guess is your real question is how to apply payments to your existing debt to pay it down in the quickest and most efficient manner. This answer would require a more detailed look at your debts and your debt profile.

However, I can tell you basically that all things being relatively equal, pay on the highest interest debt first while making the minimum payments on any other debts. Make payments above the minimum required on the highest debt, also known as additional principle payments. Pay this debt off first and then apply these payments to the next highest interest debt. This strategy is known as Debt Avalanche. There may also be the argument for paying off the lowest balance first, but without looking at your specific debts and interested rates I can’t tell you which is the most efficient. An online debt calculator may help.

$commenter.renderDisplayableName() | 10.01.20 @ 23:07