Which strategy helps reduce the amount of interest paid on debt?

Doubling the minimum monthly payments on debt is an effective strategy for reducing the amount of interest paid over time. When you pay more than the minimum, a larger portion of your payment goes toward the principal balance rather than just the interest. This means that the outstanding balance decreases more quickly, which in turn will reduce the overall interest you’ll accumulate on that debt.

Additionally, by paying down the principal amount faster, you can potentially shorten the life of the loan, leading to even more interest savings. Interest on loans and credit cards is typically calculated based on the remaining principal balance, so any reduction in that balance will directly lead to lower interest costs moving forward. This strategy also helps in improving the debt-to-income ratio, which can be beneficial for future financial endeavors.

The other strategies presented would either result in no enhancement in debt repayment or potentially worsen the financial situation, further underlining the benefits of making higher payments on existing debts.