There's no magic trick to getting out of debt — but there are proven strategies that work better than others. The key is choosing the right approach for your debt amount, credit score, and willingness to change your habits. Here are seven strategies that have helped millions of Americans get debt-free.
1. The Debt Avalanche Method
List all your debts, ranked by interest rate from highest to lowest. Make minimum payments on everything, and throw every extra dollar at the highest-rate debt first. Once it's gone, roll that payment to the next. This is mathematically optimal — you'll pay the least total interest. Best for: analytical people motivated by numbers.
2. The Debt Snowball Method
List debts from smallest balance to largest. Pay minimums on everything and attack the smallest balance first. When you eliminate it, roll that payment to the next. You'll pay slightly more in interest than the avalanche, but the psychological wins from eliminating debts keep many people motivated. Best for: people who need quick wins to stay motivated.
3. Balance Transfer to 0% APR
If you have good credit (670+) and primarily credit card debt, moving it to a 0% balance transfer card stops the interest clock for 15–21 months. Every payment goes to principal. For $5,000–$8,000 in debt that you can pay off within the promotional period, this is often the fastest and cheapest option.
4. Debt Consolidation Loan
Replace multiple high-interest debts with a single personal loan at a lower rate. If you qualify for 10% APR vs your current 24% APR, the interest savings are significant and you get a fixed payoff date. Best for: $10,000+ in debt, good-to-fair credit, people who need structure.
5. Increase Your Income Temporarily
The math on debt payoff is brutal at the minimum payment level — it can take years. The most powerful variable is how much extra you can throw at the debt each month. A side gig earning $500/month extra can cut a 3-year payoff timeline to 18 months. Temporary sacrifice for permanent relief.
6. Negotiate With Creditors Directly
Many creditors will settle debts for less than owed, especially if the account is past due. Call and ask for a hardship program, reduced interest rate, or settlement offer. You don't need a debt settlement company to negotiate — you can do it yourself. If you're 90+ days delinquent, creditors are often willing to accept 50–75 cents on the dollar.
7. Debt Settlement Program
If your debt is $10,000+ and you're struggling to make minimum payments, a debt settlement program can negotiate a reduction of 40–60% of what you owe. The trade-off is significant credit damage during the 24–48 month program. Get free consultations from at least two companies before enrolling.
The Foundation: Stop Adding Debt
All seven strategies require one prerequisite: stop adding new debt. Cut up the cards if needed, freeze them in a block of ice, delete saved payment methods from online retailers. You cannot pay off debt while simultaneously accruing more of it at 20%+ APR.