Carrying high-interest debt is like walking against a strong wind on your path to financial independence. Before building assets, you must address liabilities. The two primary strategies to eliminate debt are the Debt Snowball and the Debt Avalanche.
The Debt Avalanche focuses on mathematical optimization: you pay off debts in order of highest interest rate first, saving the most money in interest. The Debt Snowball focuses on human psychology: you pay off the smallest balance first, building quick momentum and positive habits.
While the Avalanche is mathematically superior, the best strategy is the one you can stick to consistently. Eliminate credit card debts, student loans, and personal financing using one of these methods to clean your cash flow and redirect it into compound growth.