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Program · Federal

DIY payoff: avalanche or snowball

The cheapest option if you qualify. No credit impact beyond the normal utilization effect.

Eligibility

  • Income sufficient to cover all minimums plus extra principal
  • Willingness to maintain the plan for 2–3 years
  • No imminent legal action from creditors

Limits and rules

  • Avalanche: pay minimums on everything, throw all extra at highest-rate debt first
  • Snowball: pay minimums on everything, throw all extra at smallest balance first
  • Either approach is better than paying equal extra across all debts

Source

FCAC: Paying off your debts →

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