PSECU Points to Know: Ways to pay down debt

Sara Weiser – PSECU’s Public Relations Manager

Paying down debt is important, but can be overwhelming. Here are two popular strategies for paying down debt. Read them over and decide which one will work best for you.

Pay off the smallest debts first:

  • List debts in order from smallest amount owed to largest amount owed.
  • Each month, pay the minimum payment on all debts.
  • Apply any extra money to the debt with the smallest balance. Every little bit helps!
  • Continue until smallest debt is paid off, then send the amount of the minimum payment for that former debt PLUS any extra money to the next smallest debt.
  • Continue until all debts are paid off

Pay off the highest interest rates first:

  • List debts in order from highest interest rate to lowest interest rate.
  • Each month pay the minimum payment on all debts.
  • Apply any extra money to the debt with the highest interest rate.
  • Continue until the debt with the highest interest rate is paid off. Then apply the amount of the minimum payment for that former debt plus any extra money to the debt with the next highest interest rate.
  • Continue until all debts are paid off.

We’re a financial institution that gives you more, so you can build on what you already have. We are here for you now and wherever you go after graduation.

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