How to choose a repayment method

While tackling any amount of debt is a feat, choosing an approach to pay off those loans that works best for you will make that journey a little bit easier.

- RITIKA DUBEY

If credit card debt is piling up, Jason Heath, an advice-only certified financial planner with Objective Financial Partners, suggests talking to a non-profit credit counsellor or consolidating it into a single loan.

The first order of business on the path to being debt free is taking stock of how much you owe, said Stacy Yanchuk Oleksy, CEO of Money Mentors.

Oftentimes, money becomes a feeling — “I feel stressed about it,” or “I feel hopeful about it,” blurring the real picture and actual numbers, she said.

“Take a deep breath, understand that it’s just debt, there are solutions available.”

Picking the right approach to paying down debt, and deciding whether to tackle it yourself or enlist the help of a professional, all depends on what aligns best with your life, Oleksy said.

For DIY-ers, go-to methods include the “snowball” and “avalanche” approaches.

Snowballing starts with listing the amount of all loans from smallest to biggest, and paying off the smallest in the queue first while keeping up with minimum payments on the rest of the loans.