Make a debt reduction plan

Which debt are you going to pay off first? Some people favor paying off the debt with the highest interest first. Other people prefer to tackle the lowest balances first to get that feeling of accomplishment that comes from accomplishing a goal.

Pick a strategy, stick to it

Whatever your philosophy, pick a strategy and get started. Maximize your payment on the debt you are going to payoff first, and make minimum payments on everything else. Once you have paid off that bill, take the money you were paying on that debt and add it to the minimum payment you’re making on the next debt. Keep going until everything is paid off.

Check rates and calculate

Pay close attention to the interest rate you are paying on your loans, and look for ways to reduce your interest payments. Can you transfer several credit card balances from high-interest cards to cards with lower rates and no balance transfer fee? What about a home equity loan or a personal line of credit large enough to pay off all your debt?

Our calculators can help you decide if you can benefit from consolidating some high-interest loans into lower-interest forms of debt.

Next step

Now that you have a plan to pay off your debt, create a budget that allows you to meet your necessary expenses without taking on any new debt.

Create a budget