Debt is a common reality in America’s economic culture and the professional landscape is no different. Everyone has the next quick-fix idea to eliminate it. But is there an effective solution that will allow business owners to re-pay their unsecured credit line quickly? It turns out; the simplest explanation is probably the right one.

When looking for the best defense against debt; consider the strategic snowball fight

It doesn’t matter if your debt is personal or business-related; we’re all in this together. And, perhaps because we’re all in this together; everyone has their own idea of how to get out of debt faster. The problem is, there doesn’t seem to be a one size fits all strategy that actually works to pay off debt.

Some financial advisors say consolidate, others say start with your high-interest debt first; then there are the experts who recommend lean budgetary living until your debt is cleared. While all of these ideas are strong contenders; start-up companies may not be able to pay off high-interest lenders first. Businesses with bad credit aren’t guaranteed an affordable consolidation plan and may not have room for budget cuts. When in doubt; start stacking your snowballs.

How “debt stacking” works

Let’s go back to our snowball fight analogy for a moment. What is your best defense in a snowball fight? Do you fire blindly in all directions hoping you hit something? Probably not. Instead, you strategically aim for the person throwing the most snowballs. Your debt repayment strategy should work similarly.

Decide how to use your unsecured credit line to its full advantage. Take aim at those high-interest credit cards after all; using the additional resources to pay them off first. Then set your sights on your next source of debt, with one small adjustment. Take your monthly credit card payment and add it to the minimum payment you owe on your next targeted debt. With every account you clear more resources become available to pay off the next one. This is called debt stacking and it is a very effective way to pay off your debt quickly.

The debt you target is your choice, so you can create a customized repayment structure. You’ll still need to make timely minimum payments on your outstanding debt, but as you start targeting the accounts those balances will begin to disappear. The best part is, this strategy works for paying off your unsecured credit line too.

The interest rate on credit line funds is usually lower so when you start “stacking” to repay it is up to you, just be sure to make the regular required payments until you’re ready to begin. Following this strategy will help your business recover faster, break bad spending habits, restore good credit, and avoid the penalties and legal repercussions of defaulting.

How fast you pay back your credit line is up to you, just don’t fall behind on the monthly minimums. And remember, clearing your debt sooner rather than later is the best strategy of all.