Choose a strategy to pay down your debt.
See different ways to lower your balances, reduce interest, and build a clear path to payoff.
Make every minimum payment, then choose where your extra money goes.
Put extra toward your highest-rate debt or your smallest balance. You can also see whether a lower-rate option could help. Whichever path you choose, avoid adding new balances as you pay down debt.
What shapes your payoff path
Target a high rate to cut interest costs, or a small balance to pay off one debt sooner.
The amount left after required minimums tells you what extra payment you can keep up each month.
A new credit product may change your rate, fees, monthly payment, and total cost.
What you could realistically do next
Pay every minimum, then put extra money toward the highest-rate debt. This may reduce interest costs when you keep payments steady.
What to check: Each rate and confirm you can keep paying extra each month.
Best if: You want extra payments to target your highest interest rate first.
Pay every minimum, then put extra money toward the smallest balance. Paying off one debt sooner may help you stay with the plan.
What to check: Balances from smallest to largest and note the rates on larger debts.
Best if: Seeing individual debts paid off helps you keep going.
Combine multiple debts into one monthly payment, with the potential for a lower rate.
What to check: The new rate, monthly payment, fees, payoff date, and total cost with what you pay today.
Best if: You have multiple debts and can qualify for a lower rate with a monthly payment that fits your budget.
A nonprofit counselor can review what you owe and help you build a repayment path when managing payments alone is difficult.
What to check: Ask about counseling costs and any debt management plan fees or account terms.
Best if: you want help reviewing your budget, debts, and payment options.
Match the path to your priority
- 1Cover the minimums
Confirm your monthly debt-payment amount covers at least the required minimum on every account.
- 2Choose where extra goes
Check whether cutting interest or paying off an individual debt sooner would help you stay on track.
- 3Check a new rate
If you have several high-rate debts, confirm whether consolidation or a balance transfer could lower your total cost.
- 4Get help if needed
If minimum payments are hard to manage, confirm what support a nonprofit credit counselor offers before choosing a plan.
A workable plan depends on your debts and budget; a new credit product is not guaranteed to offer better terms.
Gather these numbers before you choose
Write down what you owe on each account so you can see which debt a smallest-balance-first plan would target.
Record each interest rate and minimum payment to see where interest costs are highest and what you must pay.
Note how much you can put toward debt each month, including minimums, without relying on new balances.
A simpler payment or faster win may change your total cost
The avalanche puts extra money against your highest rate, which may cut interest costs.
A high-rate debt with a large balance may take longer to pay off.
The snowball can help you pay off an individual debt sooner.
Higher-rate debts may keep adding interest as you focus on smaller balances.
Consolidation can turn several payments into one; a balance transfer may offer a low promotional rate.
Fees, a longer payoff period, or a rate change can raise the total cost.
Common questions about debt payoff strategies
Is the debt avalanche or debt snowball better?+
Neither is best for everyone. The avalanche sends extra money to your highest-rate debt and may cut interest costs. The snowball targets your smallest balance, so you may pay off an individual debt sooner. Choose the approach that helps you make steady payments.
Can consolidating debt help me pay it off faster?+
It may help if the new rate and repayment schedule let you pay down debt sooner. Debt consolidation replaces or combines debts; it does not reduce what you owe by itself. Check the rate, fees, monthly payment, payoff date, and total cost. If you owe on several accounts, see guidance for multiple debts.
Should I pay more than the minimum on my credit cards?+
Paying more than the minimum can lower a card balance faster and reduce future interest. Keep making at least the minimum on every debt, then direct extra money where it helps your plan most. If you want to lower interest for a set time, check whether a balance transfer fits your payoff budget.
Should I stop using my credit cards while paying them off?+
Avoiding new balances makes it easier for your payments to reduce what you already owe. If you still need to use a card, include those purchases in your monthly budget. For more ways to manage card balances, see the credit card debt guide.
When should I consider credit counseling?+
Consider it when you want help reviewing your budget, debts, and repayment options. A nonprofit counselor may offer a debt management plan, yet counseling does not require you to enroll. If you are still choosing your first step, start with the broader get out of debt guide.