Days 45–48 of 90 · STRENGTHEN · Week 7: Create Your Debt Strategy
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Common Approaches to Repayment
Learn the main methods without being sold one.
About 22 minutes
Learn
Two widely discussed approaches: paying the highest interest rate first, or paying the smallest balance first.
Highest-rate-first generally minimises total interest. Smallest-balance-first generally produces visible wins sooner.
Neither is universally correct. The best method is the one you will keep doing.
Do
Write one sentence describing each approach in your own words.
Reflect
Which approach matches how you actually stay motivated?
Day 46
Highest Rate First
Understand the lowest-cost route.
Learn
This approach directs everything above minimums to the most expensive balance, then moves down the list.
Mathematically it generally results in the least interest paid overall.
It can feel slow if your highest-rate debt is also your largest.
Do
Identify which debt this approach would target first for you.
No debts recorded yet. Add one, or continue if you have none.
Total balance
$0
Total minimums
$0
Highest rate
—
Smallest balance
—
Reflect
Would that first target feel achievable, or discouraging?
Day 47
Smallest Balance First
Understand the momentum route.
Learn
This approach clears the smallest balance first, then applies its payment to the next smallest.
It usually costs more in interest, but produces early completions that many people find sustaining.
Behavioural fit is a legitimate financial consideration, not a compromise.
Do
Identify which debt this approach would target first for you.
No debts recorded yet. Add one, or continue if you have none.
Total balance
$0
Total minimums
$0
Highest rate
—
Smallest balance
—
Reflect
How much would clearing one whole account change your outlook?
Day 48
Other Routes
Know the options that change the terms rather than the order.
Learn
Consolidation, balance transfers and refinancing change the rate or structure rather than the payoff order.
They can reduce cost, but they can also extend terms, carry fees, or free up credit that gets reused.
Hardship programmes and non-profit credit counselling exist for genuinely unmanageable debt.
Do
Note whether any of these routes are worth investigating in your situation.
Reflect
Is your debt a repayment problem, a rate problem, or an income problem?
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