Many people take on several debts, such as a car loan, credit card debts and a line of credit. Here are two methods to tackle multiple debts.

The avalanche and the snowball debt repayment methods begin the same way, determining the monthly amount to apply to your debts.

Avalanche method. You make the minimum payment on all debts except the loan with the highest interest rate. On that debt, you pay the remainder of your monthly debt repayment amount. This approach starts at the top of the debt mountain and then wipes out the remaining debts. The avalanche method suits individuals seeking to save more money on interest by tackling the most expensive loans first.

Snowball method. You follow the same practice of making the minimum payments, but you apply the remainder of your monthly amount toward the loan with the smallest amount owing. This solution removes a debt sooner, and the amount you apply to the next smallest debt snowballs. The snowball method suits those who want to see a result more quickly, but you pay more interest over time compared to the avalanche method.