Create a strategic plan to eliminate multiple debts efficiently. Compare debt avalanche vs snowball methods to find your optimal payoff strategy.
Debt avalanche pays off highest interest rate debts first, saving the most money mathematically. Debt snowball pays off smallest balances first, providing psychological wins and motivation. Choose avalanche for maximum savings or snowball for motivation.
Pay as much extra as your budget allows while maintaining an emergency fund. Even an extra $50-100 per month can save thousands in interest and years of payments. Review your budget to find areas to cut expenses.
Generally, pay off high-interest debt (>6-7%) before investing. However, always contribute enough to get your full employer 401(k) match first - it's free money. For lower interest debt, you might invest while paying minimums.
Contact your creditors immediately to discuss hardship programs, payment plans, or temporary forbearance. Consider credit counseling services, debt management plans, or in extreme cases, bankruptcy consultation with an attorney.