Debt can feel overwhelming, but a clear plan makes it manageable.
Key takeaway: List all debts, always pay the minimums, then put extra money toward one debt at a time.
List every debt
Write down each debt, its balance, interest rate and minimum payment.
Choose a method
- Avalanche: pay extra on the highest interest rate first. This saves the most money.
- Snowball: pay extra on the smallest balance first. Quick wins keep you motivated.
Find extra money
Cut expenses, sell unused items or use part of any extra income.
Avoid new debt
Pause using credit cards while paying off balances.
Talk to lenders
If you’re struggling, contact lenders early. Many offer payment plans.
This article is general information, not personal financial advice. Consider speaking with a qualified professional about your situation.
