Get Out of Debt
Break free from high-interest debt using proven strategies. Your roadmap to financial freedom starts here.
Not All Debt Is Created Equal
Understanding the difference between good debt and bad debt is crucial to building wealth. Here's how to tell them apart:
Good Debt
Debt that increases your net worth or generates income. Typically has low interest rates and builds equity or skills.
🏠 Mortgage (Primary Residence)
Low interest rate (3-5%), builds equity, property appreciates over time
📚 Student Loans (Strategic)
Low interest rate, increases earning potential, tax-deductible interest
💼 Business Loans
Reasonable interest rate, generates revenue, tax-deductible
🏡 Investment Property
Rental income covers payments, property appreciates, tax benefits
Bad Debt
Debt used to buy depreciating assets or consumables. High interest rates that drain your wealth over time.
💳 Credit Card Debt
High interest (15-25%+), used for consumables, compounds against you
🚗 Car Loans (Expensive Cars)
Depreciates 20% immediately, high interest (5-10%+), not an asset
💸 Payday Loans
Predatory interest rates (300-400%+), debt trap cycle
🛍️ Store Financing
High interest (20-30%), depreciating items, impulse purchases
🎯 Our Goal: Eliminate All High-Interest Debt
We consider "high-interest debt" to be anything above 5%. Why? Because historical market returns average 7-10% annually. If you're paying 5%+ in interest, you're losing the opportunity to invest and grow wealth.
Focus on aggressively paying off credit cards, car loans, personal loans, and student loans above 5%. These debts are wealth killers—every dollar you pay in interest is a dollar that can't compound and grow your net worth.
Two Proven Methods to Crush Your Debt
Both methods work. The question is: which one fits your personality and goals?
The Avalanche Method (Most Mathematically Efficient)
How it works: Pay off debts in order of highest interest rate to lowest, regardless of balance.
Example:
- 1️⃣ Credit Card A: $5,000 @ 22% ← Pay this first
- 2️⃣ Credit Card B: $8,000 @ 18%
- 3️⃣ Car Loan: $15,000 @ 7%
- 4️⃣ Student Loan: $20,000 @ 4%
The Snowball Method (Best for Motivation)
How it works: Pay off debts in order of smallest balance to largest, regardless of interest rate.
Example:
- 1️⃣ Credit Card B: $1,500 @ 18% ← Pay this first
- 2️⃣ Credit Card A: $5,000 @ 22%
- 3️⃣ Car Loan: $15,000 @ 7%
- 4️⃣ Student Loan: $20,000 @ 4%
Which Method Is Right for You?
Answer these questions to find your best debt payoff strategy:
How do you stay motivated?
🧮 Debt Payoff Calculator
Enter your debts below and see exactly which order to pay them off.
Start Your Debt-Free Journey Today
Pick your method, make a plan, and stick to it. You can do this. Financial freedom is within reach.