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Debt Repayment Strategies

Practical ways to pay down debt on your own, from the avalanche and snowball methods to handling collections and building a plan that sticks.

Where are you with paying off debt?

Start with the situation that best matches yours.

Pick a payoff method

The snowball, avalanche and snowflake methods, plus how to decide which debt to pay off first.

A woman working out a debt payoff plan at the dining table, a red calculator beside her
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Work with your creditors

How to ask for lower interest, settle a debt on your own and find options when money is tight.

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Pay down debt in four steps

There's no single right way to pay off debt, but most plans that work follow the same basic steps.

  1. List what you owe

    Write down every debt with its balance, interest rate and minimum payment.

  2. Pick a method

    Choose the snowball, the avalanche or another approach that keeps you going.

  3. Lower your costs

    Ask for a lower interest rate, and look for room in your budget to pay a little extra.

  4. Keep going

    Track your progress and celebrate milestones so a setback doesn't stop you.

Stay motivated

Paying off debt takes time. These guides help with the emotional side, from setbacks to keeping a social life.

Friends laughing around a potluck dinner at home, a red casserole on the table
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When doing it yourself isn't enough

Paying debt down on your own works for many people. But if your payments barely touch the balance, or you're falling behind, a free evaluation can help you understand options such as credit counselling, debt consolidation or a consumer proposal.

A young man talking through his options with a counsellor at a small table, a red scarf on his chair

Common questions

Is the snowball or avalanche method better?

The avalanche method, paying the highest-interest debt first, usually saves the most money. The snowball method, paying the smallest balance first, gives quicker wins that help some people stay motivated. The best method is the one you'll stick with.

Avalanche vs. snowball 
Which debt should I pay off first?

Many people start with the debt charging the highest interest, while keeping up the minimum payments on everything else. If motivation is the challenge, clearing a small balance first can help.

Which debt to pay first 
Can I negotiate with my creditors myself?

Yes. You can ask for a lower interest rate or try to settle a debt on your own. Get any agreement in writing before you pay.

A do-it-yourself settlement guide 
Should I pay off debt or save for retirement?

It depends on your interest rates and goals. Paying down high-interest debt often comes first, but many people keep saving a little at the same time.

RRSP or pay off debt? 
What if I can't afford my minimum payments?

That's a sign it may be time for outside help. A free evaluation can help you understand options such as credit counselling, debt consolidation or a consumer proposal.

Get a free evaluation 

Take the next step with your debt

You don't have to have it all figured out. Start with the question you're trying to answer.

If your debt feels bigger than a do-it-yourself plan, Debt.ca can help you understand your options. A free evaluation can walk you through solutions ranging from credit counselling and debt consolidation to more structured options such as a consumer proposal.

Debt.ca provides information to help Canadians understand their debt and credit options. Your available options depend on your individual financial circumstances.

Not sure where to start?

Talk to a debt expert about your options. It's free, and there's no obligation.

Explore your debt-relief options