Debt Repayment Strategies

Responsible debt repayment is a valuable skill when it comes to borrowing money. Without it, regular purchases can lead to extreme financial hardship. This lesson introduces students to three popular debt repayment strategies (the Snowball method, the Avalanche method and Consolidation) and a personal debt repayment plan.

Choose a repayment strategy to structure your plan. Popular strategies include the Snowball method (sorting your debts from lowest balance to highest balance), the Avalanche method (sorting your debts from highest interest rate to lowest interest rate), and Consolidation (taking out a new loan to pay off all your other debts, then repaying that one loan). Each strategy has its own pros and cons, so a little research will come in handy in determining which strategy best suits your circumstances.

Fox Communities Credit Union is a full-service, not-for-profit financial institution serving members throughout Eastern Wisconsin, including Appleton, Green Bay, Oshkosh, Manitowoc, and Milwaukee.