10 Methods to Help Pay Off Debt
Written by LendingPoint Editorial Team
Looking for the fastest way to pay off credit card debt? The best approach may vary depending on your situation.
There’s no sugar-coating it: Americans are in debt. And while the presence of debt isn’t necessarily a bad thing, many of us would like to get rid of high-rate credit card debt. The average credit card balance, according to TransUnion, is $6,523, and nearly half of U.S. credit cardholders report carrying a balance.1
The benefits of eliminating credit card debt are obvious. Zero debt means zero interest payments —meaning you keep more of your money for yourself.
- Average credit card interest rates have been above 20%, with accounts carrying balances averaging about 22–23% APR in 2025.2
That extra money could go into savings, contribute to your mortgage, or fund a vacation. And depending on how much of your available credit you’re using, paying it off could result in a boost to your credit score.3 Here’s how to find a strategy that will work for you.
Winter Is Coming: Three Debt-Repayment Methods
The first step to getting your debt in order is to face the problem head-on. Figure out everything you owe, including credit cards, student loans, and medical bills, and add it up. The sum may be larger than you anticipated, and that’s OK — you’re already taking a step in the right direction.
Next, you might wonder which debt to pay off first. There are a few schools of thought, all with pros and cons. The best debt repayment method for you will depend on your budget, the kind of debt you have to repay, how quickly you want to be debt-free, and other lifestyle factors.
The Snowball Method
This method — where you pay off your debts from smallest to largest — allows you to build momentum as you pay down your debts (think of a snowball gradually growing bigger as it rolls). While you’ll keep up on all of your bills by sending in the minimum payment each month, you’ll focus on your smallest debt, funneling all that you can into it. Once it’s paid off, move on to your second-smallest amount, concentrating on getting that to zero.
While starting with the largest debt or highest interest rate might make more sense from a sheer dollars-and-cents perspective, the psychological benefits of eliminating individual debts shouldn’t be underestimated. The snowball method lets you make progress quickly, which is a great feeling. The quick (or even not-so-quick) wins you may experience along the way can help keep you committed.
Example: Steven Snowball
Steven focuses first on Credit Card #1, paying as much as possible toward it each month, and paying the minimum on the other three debts. Once the $850 is paid off, he will begin to tackle Credit Card #2. He doesn’t take interest rates into account.
The Avalanche Method
To employ the avalanche method, you’ll first tackle your debt with the highest interest rate and pay the minimum payment on all other balances. The advantage over the snowball method is you’ll likely incur fewer interest charges, but it may take longer to feel like you’re making headway.
Example: Allison Avalanche
Allison targets Credit Card #2 first, as it has the highest interest rate and therefore her interest (and her total debt) will accrue faster if left unpaid. She will keep up with minimum payments on the other accounts until this one is paid off, then address Credit Card #1.
The Blizzard Method
This hybrid combines the quick-win feeling of the snowball method with the interest-rate-reduction strategy of the avalanche plan. Start by using the snowball strategy and tackling your smallest debt. Once that’s paid in full, you’ll switch to the avalanche approach, focusing on the debt with the highest interest rate.
Example: Brian Blizzard
- Credit Card #1 has a balance of $850 and an interest rate of 16.7%
- Credit Card #2 has a balance of $3,000 and an interest rate of 22.4%
- Auto Loan has a balance of $5,000 and an interest rate of 8.2%
- Credit Card #3 has a balance of $7,500 and an interest rate of 9.3%
Brian will focus initially on Credit Card #1. Once his smallest debt is paid off and he feels a sense of momentum, he’ll start aggressively paying down Credit Card #2.
Some view this as the “Goldilocks” approach, as it allows for both psychological and mathematical victories.
The Savings Scenario: You may opt to balance paying off debt with adding to your savings. Whether you’re saving for a major purchase, an emergency, or retirement, a good rule to follow for your budget is the 50-30-20 breakdown. Allocate 50% of your take-home pay to your regular monthly bills (housing, utilities, groceries, etc.), 30% for discretionary purchases, and 20% split between savings and paying off debt. Want to eliminate your debt and grow your savings faster? Cut down on those nonessential expenses and tap into that 30%.
How to Pay Off Debt Fast: Six Tips
- Negotiate a lower interest rate: Creditors would rather you repay your debt at a lower rate than default, so they may be willing to negotiate a lower interest. The worst they can say is “no,” so don’t be afraid to ask.
- Leverage any extra cash: It’s easy to spend holiday bonuses, tax refunds and even raises on discretionary items. But think of your long-term future. When you can, direct any “extra” funds to paying off your debt.
- Get brutally honest with your budget: One question many people have is how to pay off debt fast with low income. Even if your budget is tight, small changes can add up. List all of your expenses and see if there is anything to cut out. If you can only spare $20 a month, that’s $20 you can put toward reducing your debt.
- Consider a side gig: You don’t need to dedicate every minute of your spare time to a rideshare or shopping service. Start small, with freelance projects that take a few hours at a time. If you can use the experience to hone a skill you already have (such as tutoring, technical writing, or light construction), it’s a win-win.
And to make sure you aren’t taking a step back by racking up new debt, make sure you’re doing the following:
- Clear out your payment information cookies: If online shopping routinely eats up a chunk of your budget each month, this simple trick may help. You’d be surprised how removing your credit card information from online stores can help you spend less.
- Stop using your credit cards: It’s tricky to make headway if you keep adding to your debt. Use cash — or a debit card tied to your checking account — to ensure you’re only spending money you have.
Considering Consolidation
If juggling multiple, high-rate debts is weighing you down, debt consolidation may be a good option. Exactly what it sounds like, a debt consolidation loan consolidates multiple debts, ideally at a lower overall interest rate. The result is one single monthly payment, which is easier for many people to monitor and manage.
Using a personal loan to consolidate debt (versus a credit card balance transfer) may also have a positive impact on your credit utilization ratio, and therefore your credit score. In the examples above, a consolidated loan might combine the total amount owed ($12,250) into one monthly payment obligation. In this scenario, three credit cards would now have zero balances.
Getting out of debt is incredibly rewarding but like any achievement, it takes discipline and work. Whether you take the avalanche or snowball route, pursue a side hustle, consolidate your debts, or use a combination of methods, what’s most important is finding a debt-repayment strategy that’s sustainable for you. Consider your budgetary obligations, your lifestyle, and your priorities as you weigh the advantages and disadvantages of all of these approaches.
Consolidating your debts may be a good way to get out of debt on your terms. Check out your loan options today, with no obligation or impact to your credit score.
Frequently Asked Questions About Paying Off Debt
What is the snowball method for paying off debt?
The snowball method focuses on paying off debts from the smallest balance to the largest. You continue making minimum payments on all accounts, then put any extra money toward the smallest balance first. Once that balance is paid off, you roll that payment into the next smallest debt. This approach can create quick wins and help build momentum.
What is the avalanche method for paying off debt?
The avalanche method focuses on paying off debts from the highest to the lowest interest rate. You make minimum payments on all debts, then direct extra funds to the debt with the highest APR first. This approach can help reduce the total interest you pay over time.
What is the blizzard method, and how is it different?
The blizzard method is a hybrid strategy. You start with the snowball method to pay off your smallest debt and build motivation. After that, you switch to the avalanche method to focus on higher-interest balances. It combines quick psychological wins with long-term savings on interest.
How do I decide which debt to pay off first?
It depends on your priorities and what motivates you.
- If you want quick progress, the snowball method may work best.
- If you want to save the most on interest, the avalanche method may be better. Some people use a hybrid approach that combines both.
How can I pay off debt faster on a tight budget?
Start by reviewing your monthly expenses and looking for small, sustainable cuts. Even modest savings can be applied to debt. You can also consider ways to increase income, such as a side gig or freelance work, and use that extra money to pay down your balances.
Can I negotiate a lower interest rate on my credit card debt?
You can contact your creditor and ask about a lower interest rate or hardship options. Results vary, but it may be worth asking, especially if you’ve made payments on time and are actively working on a payoff plan.
Should I stop using credit cards while paying off debt?
If your goal is to reduce balances, it’s usually easier to make progress when you avoid new charges. Consider using cash or a debit card for everyday spending, and remove saved card details from online retailers to help reduce impulse purchases.
What is debt consolidation, and when should I consider it?
Debt consolidation combines multiple debts into one monthly payment, often through a personal loan or similar option. It may help if you have several high-interest balances and want a single, fixed payment. Whether it saves money depends on the new rate, term, fees, and your ability to avoid new debt.
Will paying off credit card debt improve my credit score?
Paying down revolving balances can improve your credit utilization, an important factor in credit scoring. However, your score is also influenced by payment history, total debt, account age, and new credit activity, so results can vary.
Disclaimer: This content is for informational and educational purposes only and does not constitute financial, legal, or credit advice. Statistics and interest rates are based on publicly available sources and may change. Individual results, including interest savings or credit score impacts, will vary and are not guaranteed. Before making decisions about debt repayment, consolidation, or applying for credit, review your personal financial situation and consider consulting a qualified professional. Any loan products referenced are subject to eligibility, credit approval, and applicable terms and conditions.
Sources:
1https://www.bankrate.com/credit-cards/news/credit-card-debt-report/
2https://www.experian.com/blogs/ask-experian/research/current-credit-card-interest-rate/
