Navigating debt is challenging for many Americans, especially in today’s economic climate. More than half of Americans find themselves burdened by personal debt; a reality that has been entrenched more deeply by recent U.S. economic conditions. According to the American Psychological Association’s 2023 Stress in America Survey, 77% of Americans feel anxious about their financial situation, with 58% of respondents citing debt as the primary stressor.

Financial institutions can be a trusted resource in helping their customers understand exactly where they stand financially. EVERFI Achieve’s new Debt Repayment Strategy Learner Pathway offers a structured approach to developing a customized debt repayment plan by calculating total debt balance, interest rates, and minimum monthly payments. This baseline information is crucial in selecting the most effective repayment method and mapping out a debt-free journey.

Debt Repayment Strategies

Banking customers who are looking for a debt repayment strategy may feel overwhelmed, but working with a trusted financial institution with vetted resources can make it easier for them to pay down balances and work towards their financial goals. EVERFI Achieve’s new Debt Repayment Strategy Learner Pathway offers a structured approach to developing a customized debt repayment plan.

• Module 1: Debt Repayment – This lesson introduces different strategies like:
  • The Avalanche Method – This method targets the debt with the highest interest rate first, allowing customers to save money on interest over time. Once they’ve paid off the highest-interest debt, they move on to the next highest, continuing the cycle until all debts are paid. This is recommended for individuals with high-interest debts who want to minimize the overall cost of repayment.
  • The Snowball Method – This method involves paying off the smallest debt balance first, regardless of interest rate, to achieve quick wins. Once the smallest debt is paid off, they can apply the payment toward the next smallest debt, building momentum as they progress. This is recommended for individuals motivated by visible progress and smaller wins that provide psychological encouragement.
• Module 2: Debt Consolidation – Debt consolidation combines multiple debts into a single loan, often at a lower interest rate. This lesson helps users learn how to consolidate their debt and determine if combining debts could lower their overall interest rates. For people who struggle with overspending, consolidation without lifestyle changes may lead to further debt.
• Module 3: Preventing Overdraft Fees – This lesson provides tips to help avoid unnecessary charges.

A final “Next Steps” module offers guidance on maintaining progress and accessing further financial resources.

Achieve More with the EVERFI

Managing debt can be easier with the right tools and resources. By helping your banking customers manage and pay off their debt, you can build relationships and credibility for your financial institution. EVERFI Achieve is available only through a financial institution, and provides personalized tools, calculators, and educational resources, offering step-by-step guidance so your customers can create a repayment plan tailored to their unique financial situation.

EVERFI Achieve is designed so banks and financial institutions can support customers in their financial journeys with educational tools that are timely, relevant, and customizable. Whether your customers are focused on paying off debt, building an emergency fund, or planning for future financial goals, Achieve provides structured, personalized learning pathways that can help.

To help your customers make progress toward a debt-free future, explore the new Debt Repayment Strategy Pathway on EVERFI Achieve and learn how your financial institution can support their financial wellness goals.