Debt repayment methods.
Having multiple debts can feel difficult to manage.
Different repayment methods use different approaches to organise payments and prioritise what is paid first.
This module explains three common methods:
- Snowball
- Avalanche
- Round-Up
Why are there different methods?
The way repayments are organised can change the journey
Each method uses a different system for directing repayments, which can create a different repayment experience over time.
Understanding comes before action.
See where you stand by bringing your debt information together, or explore different ways people organise repayments.
Explore the options
Click on the button to learn more about each option.
- Snowball method (smallest debts first)
- Avalanche method (highest interest first)
- Round-up method (small automatic progress)
Make your debt visible in one place.
If you haven’t already, bring all your debts together so you can see the full picture clearly.
Stay aware of your debt.
Once you’ve taken your first step, the challenge becomes staying aware of your progress without overthinking it.
Some people use simple systems to help with this.
Homebank is one way to stay aware of your money easily each month.
This video shows you how to set up your debts in Homebank.
A final thought.
You don’t need to solve everything today. Choosing one simple action and sticking with it is often enough to start reducing debt stress.