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Debt Elimination

Highest Interest First

Pay minimums on all debts. Throw every extra dollar at the highest-interest debt first. This is the mathematically optimal strategy — it saves the most money over time.

Difficulty: ⭐ Beginner Category: Debt Elimination
Best for

People motivated by numbers and maximizing long-term savings. Ideal for high-rate credit cards.

How to do it — step by step
1

List all debts by interest rate, highest to lowest.

2

Pay minimums on everything except the highest-rate debt.

3

Put all extra money toward the highest-rate debt.

4

Once paid, roll that payment into the next highest-rate debt.

5

Continue until all debts are cleared.

Advantages & considerations
Advantages
  • Saves the most in total interest
  • Mathematically optimal
  • Faster total payoff timeline
Worth Knowing
  • Slower to see visible progress
  • Requires patience and discipline
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