To pay off debt, list everything you owe, keep every minimum payment current, and pick a payoff order: smallest balance first (snowball) or highest interest rate first (avalanche). Add a fixed extra amount each month, send it to one debt at a time, and when a debt is gone, roll its payment into the next one.
Run your numbers in the debt payoff calculator. Enter each debt’s balance, APR and minimum, add what you can pay extra, and it shows your debt-free date, total interest and the month each debt is paid off.
You’re not alone. Americans owed $1.26 trillion on credit cards as of Q2 2026, according to the New York Fed. The average APR on card accounts charged interest was 22.15% as of Q2 2026, per the Federal Reserve. At rates like that, the order you pay in and the extra you add both matter.
How to pay off debt, step by step
- List every debt. For each one, write down the balance, APR, minimum payment and due date. Note any promo rate and when it ends.
- Keep every minimum current. Late payments bring fees and can end a promo rate. Set minimums to autopay.
- Set a fixed monthly budget for debt. That’s your total minimums plus whatever extra you can commit to every month.
- Pick a payoff order. Snowball, avalanche, or your own custom order. The next section compares them.
- Send all the extra to one debt. Everything above the minimums goes to the first debt on your list.
- Roll payments forward. When a debt is paid off, its minimum joins the extra and goes to the next debt. Your budget stays the same; it just gets concentrated on fewer debts.
- Track and adjust. Record balances monthly. Rebuild the plan when a rate changes, a windfall arrives or your income shifts.
The debt payoff plan guide walks through each step in more detail, including how to automate the rollover.
Choose a debt payoff strategy
The strategies differ only in step 4, the order. Everything else is the same: a fixed budget, minimums on all debts, extra to one target, and rollover.
| Strategy | Order | Strength | Guide |
|---|---|---|---|
| Debt snowball | Smallest balance first | Fastest first payoff | Debt snowball method |
| Debt avalanche | Highest APR first | Usually the lowest interest | Debt avalanche method |
| Custom order | Your choice | Handles deadlines and personal priorities | Which debt to pay off first |
| Minimums only | No extra, no rollover | A baseline for comparison | Credit card minimum payment calculator |
Here’s how they compare on one set of debts. Say you have a store card at $1,200 and 17.99% ($35 minimum), a Visa at $4,800 and 27.99% ($120 minimum), and a personal loan at $9,500 and 11.5% ($250 minimum), plus $250 a month extra. Your monthly budget is $655.00.
- Snowball pays the store card, then the Visa, then the loan. First payoff in 5 months. Debt-free in 2 years, 5 months, with $3,164.65 in interest.
- Avalanche pays the Visa, then the store card, then the loan. First payoff in 1 year, 4 months. Debt-free in 2 years, 5 months, with $2,997.43 in interest.
- Minimums only takes 9 years, 10 months and costs $12,134.88 in interest.
The avalanche’s interest is lower by $167.22 on this list. The snowball gets you to your first payoff sooner. The snowball vs avalanche comparison shows a second example where both methods pick the same order and cost the same.
Both calculators are also available on their own: the debt snowball calculator and the debt avalanche calculator.
Why the extra payment matters more than the order
The order moves your interest total. The extra payment moves your timeline.
Take one card: $10,000 at 22% APR. At $300 a month it takes 4 years, 4 months and costs $5,596.10 in interest. At $500 a month it takes 2 years, 2 months and costs $2,571.43. No payoff order can do what an extra $200 a month does to that balance. For specific balances, see how to pay off $10,000 in credit card debt or $20,000 in credit card debt.
When a card’s minimum is a percent of the balance, the minimum shrinks as the balance shrinks, so paying only the minimum stretches the payoff out. The credit card minimum payment calculator shows how long a minimums-only path takes on your card, and how credit card minimum payments work explains the formulas.
Where to find extra money
The FTC’s first suggestion for getting out of debt is a budget: gather your bills and pay stubs and see where the money goes. A few places to look:
- Subscriptions and memberships you’ve stopped using.
- Tax refunds, bonuses and raises, sent to your target debt as one-time payments.
- Selling things you don’t need.
- A lower rate. Asking your card issuer costs nothing.
Keep some cash aside while you do this. Investor.gov suggests an emergency fund in a savings account so an unexpected expense doesn’t turn into new debt. Ramsey Solutions puts a $1,000 starter fund ahead of the debt snowball. If you’re weighing extra debt payments against saving or retirement contributions, see pay off debt or invest.
Lowering your interest rate
A lower rate means more of each payment goes to the balance. Two common tools:
Balance transfers. A card with a 0% intro APR can pause interest on a transferred balance for a set number of months, and the card may charge a balance transfer fee. When the promo ends, the regular APR applies to what’s left. Deferred-interest offers are different: the CFPB warns that if the balance isn’t paid in full by the deadline, you can owe interest back to the original purchase date. The balance transfer calculator shows whether the fee and the promo length work for your balance.
Debt consolidation loans. These combine several debts into one loan with one payment. The FTC notes that some require your home as collateral, so late payments could put the home at risk, and most carry costs beyond interest, such as points. A consolidation loan only helps if the new rate and fees beat what you’re paying now, and if the paid-off cards don’t fill back up.
When you need outside help
If you can’t cover your minimums, the FTC advises calling your creditors right away, before a debt collector is involved, to try to work out a new payment plan.
Credit counseling. Nonprofit credit counselors review your budget and debts. Some offer a debt management plan: you make one monthly deposit, the counselor pays your unsecured debts, and creditors may agree to lower rates or waive fees. The FTC says to interview a few counselors and avoid any that charge before doing anything or promise to fix everything.
Debt settlement. For-profit companies negotiate to have you pay less than you owe. The FTC calls these programs risky. They often tell you to stop paying creditors, which can add late fees and interest and damage your credit. Forgiven amounts may be taxable, and the process can take years.
Bankruptcy. A court discharge ends the obligation on certain debts, but the FTC notes it stays on your credit report for 10 years and is generally treated as a last option.
Guides and calculators in this section
Strategy guides:
- Debt snowball method: smallest balance first, with the research on why it motivates.
- Debt avalanche method: highest APR first, and how promo rates fit in.
- Debt snowball vs avalanche: both methods on two examples, plus hybrids.
- How to make a debt payoff plan: six steps from list to debt-free.
- Which debt to pay off first: promo deadlines, collections and secured loans.
- Pay off debt or invest: rates, the 401(k) match and taxes.
- How to pay off credit card debt: card-specific tactics.
Calculators:
- Debt payoff calculator for several debts at once.
- Credit card payoff calculator for one card.
- Loan payoff calculator for personal and other installment loans.
- Debt payoff spreadsheet to track your plan month by month.
- All calculators.
FAQ
What is the fastest way to pay off debt?
Raise the fixed amount you pay each month and keep it there. The extra payment sets most of your timeline. Then choose an order: highest rate first usually costs the least interest, and smallest balance first gets your first payoff soonest. Roll each freed payment into the next debt instead of spending it.
How can I pay off debt on a low income?
Keep every minimum current first, then put any amount extra, even small, on one debt. Call creditors early if minimums are too high; the FTC suggests asking for a payment plan you can manage. A nonprofit credit counselor can review your budget and may offer a debt management plan with lower rates.
Is it possible to pay off $10,000 in 6 months?
It depends on the rate and your budget. At 22% APR, paying $10,000 off in 6 months takes $1,775.23 a month. If that’s out of reach, try a longer target in the calculator. Our page on paying off $10,000 in credit card debt compares several common timelines side by side.
What is the best debt payoff strategy?
The avalanche, highest APR first, usually costs the least interest. The snowball, smallest balance first, usually gives you the quickest first payoff, which research links to staying motivated. If your smallest debt also has the highest rate, both give the same result. The best strategy is the one you’ll keep following.
Should I pay off debt or save money?
A common approach is some of both. Keep a small emergency fund so a surprise bill doesn’t go on a card, and take any employer 401(k) match. After that, Investor.gov advises paying off high-interest debt before investing, since no investment reliably beats a high card APR without risk.
Should I use a balance transfer to pay off debt?
It can help if you’ll clear most of the balance before the 0% promo ends and the transfer fee costs less than the interest you avoid. Stop adding charges to the old card. Watch for deferred-interest offers, which can charge interest back to the purchase date if you miss the deadline.