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If you have excess money with which you want to pay off debt, there are two strategies for paying off debt.
The first is the Debt Snowball method. In this method, you first make the minimum payments on all loans, and with the excess money, you start paying off the smaller loans in full. This way you can reduce the total number of loans and it is also psychologically pleasant to completely close some small loans.
The second is the debt avalanche method. In this method, you first make minimum payments on all loans and, with the excess money, start paying off the balances on the loans carrying the highest interest rate. This causes high-interest loan balances to decline, leading to lower interest charges on future payments.
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