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About 90% of people have debts.
If you don’t have any – good job, you are one of the smart ones and you can skip this part or read on and understand how to help someone who is dealing with debt.

Having a strategy for handling debts is like following a good diet. It should be a personal fit and takes some discipline. But it is better to have any diet than none at all. That is just an analogy but it shows that without planning in personal finance we can have problems achieving financial health.

Most people usually approach debts by just paying the minimum, or maybe just a little bit more than minimum. This method unfortunately results in paying the most interest and takes the longest to pay off.

There are a few popular strategies that can be used to pay off debt more effectively, paying less interest and getting debt paid off faster.
Three popular ones are "debt stacking", "debt snowball" and “debt snowflaking”.
Each method has its own pros and cons. One method may or may not be a match for your personal situation, whereas another may fit better. By understanding the different methods, and using our calculator you can figure out which one is better for you.