The ICE Debt Repayment Strategy
I - Illuminate:
- Shed light on your debt by listing all creditors, minimum payments, and interest rates. Order them from highest to lowest interest rate (avalanche method) to ensure the biggest savings.
C - Cut Costs: - Lower interest rates to pay off debt faster.
- Call credit card companies to negotiate a lower rate.
- Research balance transfer cards to secure a 0% interest rate for 6–18 months. Note: Calculate if the savings outweigh transfer fees and ensure the debt is paid off before the promotional rate expires.
E - Earn & Eliminate Sabotage: Find extra income through side hustles or selling unused items to put more money toward debt. Simultaneously, make access to credit difficult by removing card details from devices and literally freezing credit cards in ice to prevent impulse spending.
Address Underlying Behaviors
- Finally, it is crucial to address the root causes of debt—such as lack of an emergency fund, impulse shopping, or mindset issues—to prevent falling back into a vicious cycle of debt.
T