The First Step: Take Inventory

List every debt you owe: amount, interest rate, and minimum payment. Seeing the full picture helps you prioritize. Many people find it useful to organize debts from highest to lowest interest rate, focusing payments where it hurts most.

Two Proven Methods

• The Avalanche Method: Pay off the highest-interest debts first to minimize total interest paid.

• The Snowball Method: Pay off the smallest balances first for motivational wins.

Choose whichever approach helps you stay consistent. The goal is progress, not perfection.

Negotiation and Consolidation

If payments feel overwhelming, contact lenders before defaulting. Many offer hardship plans or reduced-rate options. Debt consolidation — rolling multiple balances into a single lower-interest loan — can simplify management and cut costs.

Building Better Habits

Once debts shrink, avoid falling back into the same pattern. Build an emergency fund to handle surprises, automate savings, and delay non-essential purchases. Remember, discipline grows stronger with practice.