How to pay off debt
Debt payoff is mostly arithmetic and consistency. The plan below works for any amount.
The plan
- List every debt. Balance, interest rate and minimum payment for each card, loan and line of credit.
- Protect your minimums. Automate every minimum payment. Missing one costs fees and hurts your credit score.
- Find a fixed extra amount. Pick a monthly amount you can sustain, even if small. Consistency beats size.
- Choose a method. Avalanche (highest rate first) costs the least interest. Snowball (smallest balance first) gives quick wins. Either works if you stick with it.
- Consider a lower rate carefully. A consolidation loan or balance transfer helps only if the rate and fees are lower and you stop using the old cards.
- Stop adding new debt. Take the cards out of your wallet and digital wallets until the plan is done.
- Talk to your lender early if you're struggling. Contact them before you miss a payment. A non-profit credit counsellor is another option.
This week
- Write down all your debts.
- Set up automatic minimum payments.
- Run the avalanche vs snowball calculator and pick your first target.
Calculators for this plan
General information, not financial advice. This plan is a general guide. It does not know your full situation. Check with a qualified professional and the official sources before making decisions.
Sources
Checked October 16, 2026. Rules and limits change; confirm with the source before acting.