6 Strategies Anyone Can Use To Pay Off Debt

Vance Cariaga

Thu, May 22, 2025, 6:02 AM 3 min read

People who find themselves under a mountain of debt might wonder whether they’ll ever crawl out of it. The first thing to know is that plenty of others have found themselves in the same position. And, many have been able to become debt-free — and in less time than you might think. The key is to follow the right strategies.

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There is no single solution to paying off debt, because a lot depends on the type of debt, the amount, and your personal financial situation. But there are some overlooked strategies for paying off debt that everyone can use.

With debt settlement, you hire a company to negotiate directly with your creditors so you can pay a settlement — often a lump sum of money — that’s less than what you owe. Debt settlement can be an effective option because you actually eliminate debt rather than simply restructure it.

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This method of paying off debt involves paying the minimum on all debts except the one with the smallest balance. The goal is to use any extra funds to pay off the smallest debt first so you can wipe it off the books and then move on the debt with the next smallest balance, creating a “snowball” of payments that builds momentum as it runs over each debt.

As an alternative to the snowball method, you can use the avalanche method. This involves paying the minimum amount on most debts but paying an extra amount on the debt with the highest interest rate each month. Once you eliminate it, you have reduced your overall debt and the amount of interest you have to pay. After that, you can shift your focus to the debt with the next-highest interest rate.

With debt consolidation, you combine all of your debts into a single loan that allows you to make one monthly payment. The idea is to get a lower interest rate with the consolidated loan, which will save you money over time. It also simplifies your debt so it’s easier to track and manage.

Debt consolidation works especially well if you’re juggling different credit card bills from multiple lenders with varying interest rates. Debt consolidation combines all those debts into a single new loan that’s typically at a fixed interest rate.

This is another effective strategy because a lower interest rate means more of your payment can be applied to the principal, which speeds up the process of paying off the debt. Although not all credit card companies will negotiate a lower rate, your chances increase if you’ve had the card for a long time and built a history of paying on time. A recent boost in your credit score can also help.