Settling debt is not an easy process. It can be stressful and confusing, especially if you have multiple sources of debt on your plate. If you have this problem, then you’re probably wondering which of your debts to pay first to ensure you’re on the fast track to becoming debt-free. If you’d like to find out which method is right for you, then here are some professional tips on how to approach paying off debt including which debt you should pay first.

There are two primary methods of paying off debt:

• Paying high-interest debt first: This is the most common approach and it’s easy to understand why: You’ll end up paying less interest in the long-run. This means that once you’ve paid off your bigger debts, you’ll have more money to put toward your low-interest debts. This is often the most effective way of becoming debt-free, but it isn’t without challenges. If you focus on paying the bigger debts first, it’ll take longer and you may feel like you aren’t making enough progress. If this is the case, it can become trickier to stick to your plan. However, your concerns will likely subside after you’re able to get past the initial roadblock and it will be a much easier process when you only have to pay off smaller debts.
• Pay low-interest debt first: Starting by paying off your low-interest debt might be in your best interest if you want to feel like you’re making progress right away. Knocking out the smaller debts is the best way to reduce the number of debts you have to pay, possibly making the process of becoming debt-free easier to manage and compartmentalize. With this method, however, you’ll end up paying more in the long run when it comes to interest. But if quick progress and crossing debt off your list is what you’re looking for, this might be a good option for you.

While the right debt paying method for you depends on your personal feelings and behaviors, the best option is to always keep making your payments on time. If you need assistance strategizing a debt payment solution, the financial experts at Progressive Debt Relief are here to help. Our professionals are fully equipped to help you settle your debt efficiently and discreetly through our relationships with collections agencies and our debt settling, negotiating, and counseling services.

We know paying off debt is a stressful process, so we offer free consultations and no upfront fees to make sure our services will be beneficial to you. To find out more or to schedule a complimentary consultation, contact us today.