From credit cards to student loans to mortgages, debt is a fixture in US households. Americans carried $18.8 trillion in debt in the first three months of 2026, up nearly 25% from 2019, just before the pandemic triggered a recession.
Debt that helps someone build equity or advance in their career can be considered a net positive. But for some borrowers, debt can get out of hand, making it harder to see a clear path out.
Around 28% of 2,000 adults surveyed by Achieve.com and Money.com said they feel that their debt load is unmanageable. While life has indeed gotten more expensive, many borrowers say they cope with costly financial habits like putting everyday purchases on credit cards, not paying bills in full, and using buy now, pay later for necessities.
Debt doesn’t disappear, but there are ways to speed up or simplify the repayment process. Here are common strategies to consider.
1. Debt avalanche method
Interest can add years to your debt repayment schedule if you’re making level payments across several balances.
The debt avalanche method helps you eliminate balances in order of highest to lowest interest, knocking out the balances that might seem never-ending due to compound interest. In the end, you’ll pay less interest using this method than you would prioritizing the smallest (but not necessarily the costliest) balance first.
Implement this strategy by making a list of your balances by interest rate. Continue paying the minimum on all balances — this is important, as not doing so could wreck your credit. Funnel any extra cash you have toward the highest-interest balance until it’s paid off, then move on to the next debt. Extra cash can be money you would have otherwise been paying toward another debt balance, additional income, a sudden windfall, or a tax refund.
When to consider: If you have credit cards or other forms of unsecured debt charging 10% or more in interest, consider the debt avalanche. Not only are credit cards notorious for sky-high rates, but those rates are variable, meaning they can change at any time and make future payments unpredictable.
2. Debt snowball method
The debt snowball method is another favorite that utilizes a mindset approach rather than a numbers approach.
Here, you prioritize your smallest balance, no matter the interest rate, while continuing to pay the minimum on each balance. When you put all your additional resources — like extra income, windfalls, or refunds — toward paying down the smallest balance, you’ll build momentum. You won’t save the most long-term (the math means a debt avalanche will save more over time), but don’t discount the impact of seeing debt fall off your balance sheet in relatively short order.
When to consider: You’ve tried to crunch the numbers on paying down your debt and get overwhelmed, or you simply need a motivational trick.
3. Debt consolidation loan
It might seem counterproductive to take on more debt to get out of debt, but it can be a great optionfor the right borrower. Debt consolidation is the process of taking out a personal loan, home equity loan, or fixed-rate home equity line of credit for the sum total of all your other debt and using the proceeds to pay off those balances. You’ll no longer have to keep track of multiple monthly payments, and ideally, you reduce interest charges.
This strategy can also be executed using a balance transfer credit card, but be cautious. These cards offer a 0% introductory rate typically for about 12 or 18 months before the rate resets to a standard APR. Average credit card rates range from 12.20% to 34.52%, according to a May 2026 report from the credit-reporting agency Experian. If you aren’t certain you can pay off the balance in the time frame allotted, opt for another form of borrowing.
When to consider: You may qualify for a loan with more favorable terms than your existing debt and want to simplify repayment with a single monthly payment.The key to this strategy is finding a loan that charges lower interest than the average rate on your current balances, otherwise you’re essentially just shifting the debt to a new lender.
4. Debt relief
If managing your debt load on your own feels overwhelming, a debt settlement (or debt relief) company might be able to help. These companies deploy debt negotiators who try to persuade your lenders to accept less than you owe on unsecured debt, like personal loans, credit cards, and medical bills.
Before approaching lenders, a debt relief company will need to evaluate your cash flow to determine how much you can realistically pay. You shouldn’t have to pay for this service, or any introductory calls. If you agree to work together, debt relief companies charge a fee that is disclosed before enrollment and is typically based on factors such as the enrolled debt amount, subject to applicable laws and regulations.
While debt relief can be a great solution for the right borrower, debt settlement comes with serious risks, so be cautious when exploring this option. As part of the process, you will likely be instructed to stop making minimum payments and begin setting aside funds in a dedicated account. Your credit score may take a temporary hit.
Only consider companies with a program guarantee, clear terms, conditions, and fees, and transparency around the timeline and approach to negotiations and repayment. Companies can only legally collect a borrower’s fee when, and if, they successfully negotiate a settlement.
Debt relief may be most appropriate for consumers experiencing financial hardship who are unable to realistically repay their unsecured debt under the original terms.
When to consider: You want to avoid filing for personal bankruptcy, which can take your credit years to recover from.
Debt payoff strategy FAQs
What is the best debt payoff method?
The best debt payoff method is one that aligns with your objective. Some strategies prioritize saving on long-term interest charges, as in the debt avalanche, while others focus on streamlining payments, as in debt consolidation. Use a strategy you understand and that satisfies your goals.
Should I consolidate my debt?
You should only consolidate your debt if you can qualify for a new loan with a desirable interest rate. Consider all of your options, including a home equity line of credit (preferably with a fixed interest rate), a home equity loan, or a personal loan.
Should I use a debt relief company?
You should consider using a debt relief company, or a debt settlement company, if you cannot afford to repay what you owe and need help negotiating with lenders. Be sure you understand the terms and conditions of the debt relief program and do not pay any fees until you have reached a settlement.
