Pay minimums on all debts, put every extra dollar toward the highest-APR debt first. Mathematically optimal — minimizes total interest paid. Best for those motivated by numbers and cost savings.
❄ Debt Snowball
Pay minimums on all debts, put every extra dollar toward the smallest balance first. More motivating wins — each paid-off account builds momentum. Best for those who need psychological wins to stay on track.
Research (Harvard Business Review) shows the snowball method leads to higher overall debt repayment completion rates despite costing more in interest — because motivation matters. Choose the strategy you'll actually stick with.
Frequently Asked Questions
Debt consolidation combines multiple debts into one loan, ideally at a lower rate. It can save significant interest if you can get a personal loan below your average credit card rate. Key: don't run the credit cards back up after consolidating — consolidation solves a rate problem, not a spending problem.
Pay off any debt above ~7% interest before investing beyond your employer match. Below 7%, the math favors investing (historical stock returns ~7–10%). Exception: always get your full 401(k)/RRSP employer match first — it's a guaranteed 50–100% return.
⚠️ Simulations assume fixed minimum payments and constant rates. Not financial advice.
EQ Bank
Earn 4.00%* on your savings
Canada's leading digital bank. No monthly fees. No minimum balance. CDIC insured deposits.