5 Repayment Strategies Every Borrower Should Know!

Carrying debt can feel like a heavy backpack. You want to lighten the load, but where do you start? Good news, there are proven strategies that help you take control of loans, credit cards, and other balances. 

Loan repayment is the process of paying back borrowed money over time. Each payment usually includes two parts: principal, which reduces what you owe, and interest, which is the cost of borrowing. Early in a typical amortizing loan, more of your payment goes to interest, and later, more goes to principal.

Not all loans need the same payment plan, but there are several ways to make your payments easier. Check out these five repayment methods that really work.

The snowball method pays off your smallest debts first, giving you quick wins that build momentum and keep you motivated to continue.

How it works: 

• List all debts from smallest to largest balance. 
• Pay the minimum on every debt, except the smallest. 
• Put all extra cash toward the smallest balance until it’s cleared. 
• Move to the next-smallest, repeat. 

The Snowball Method is Best For... 
People who want visible progress fast and like checking things off a list.  

This directs all extra payments to your highest-interest debt first, reducing interest charges and saving you more overall. 

How it works: 

•  List debts by interest rate, highest to lowest. 
•  Pay the minimum on all, then put extra toward the highest-rate debt first. 
•  After clearing it, move to the next highest rate. 

Avalanche Payments Are Best For... 
 Borrowers who want to save the most on interest and pay off debt efficiently by focusing on the highest-interest loans first. 

Splits your monthly due into half payments every two weeks, often creating one extra full payment each year and shortening your payoff. 

How it works: 

•  Divide your monthly payment in half and pay every two weeks. 
•  Confirm your lender applies payments as received. 
•  Automate the schedule so you never miss a cycle. 

Biweekly Payments are Best For... 
People paid biweekly or anyone who wants faster payoff with minimal lifestyle change. 

How it works: 

•  Shop offers and compare APR, fees, and remaining term. 
•  Check for prepayment penalties on your current loan. 
•  Refinance only if total cost over the life of the loan goes down. 

Refinancing is Best For... 
 Borrowers with improved credit or access to lower market rates. 

Schedules payments right after salary crediting to prevent missed dues and overspending. 

How it works: 

•  Set auto-debit on or the day after payday. 
•  Add a small extra principal amount each cycle if possible. 
•  Keep a buffer to avoid insufficient funds. 

Auto-Debit Aligned to Payday Is Best For... 
Borrowers who prefer convenience and consistency by having payments automatically deducted every payday. 

Paying your loan doesn’t have to be hard. You can use a bank app, an e-wallet, partner counters, or set auto-debit so payments post on time. Pick the option that fits your payday and budget, check fees and posting times, and always save your receipt. 

1. Bank transfer 
You can send repayments from your bank app to your lender’s account. Instant transfers may post the same day, while regular transfers can post the next banking day. 

•  Widely available with digital receipts for easy tracking 
•  You can schedule transfers in advance to avoid late fees 
•  Often lower fees than over-the-counter cash payments 

2. E-wallet bills pay 
 Most e-wallets have a Bills Pay section where you can select your loan biller and pay in a few taps. 

•  Pay anytime on your phone with instant in-app proof of payment 
•  Saved details and reminders make repeat payments faster 
•  Many billers post quickly, which helps keep accounts current 

3. Authorized payment centers 
 You can pay in cash at partner counters and convenience stores that accept loan payments. 

•  Works even without online banking or a smartphone balance 
•  Long operating hours at many branches and stores 
•  Staff can help enter details to reduce posting errors 

4. Auto-debit 
 Your lender can deduct the amount due from your bank account on your due date. 

•  On-time by default, which supports a stronger payment history 
•  Set once and let it run, so you are less likely to forget 
•  You can align the debit with payday to protect cash flow 

5. In-app or online payments 

Some lenders let you pay inside their app or web portal using a linked bank account, debit card, or QR. 

•  One place to see balance, due date, and payment history 
•  Multiple payment methods give you flexibility 
•  Fast confirmation and downloadable receipts 

Turn plans into action with a quick cash application, clear terms, and flexible ways to pay. Apply in the Home Credit app, get a fast decision, and choose repayments that match your payday and budget. Download the app to check your eligibility and start today.