Getting out of debt fast comes down to two things: paying more than the minimums, and aiming that extra money at one debt at a time. Everything else in this plan exists to make those two things easier to do and harder to undo.
You’re not alone if this feels heavy. According to the Federal Reserve Bank of New York, US household debt stood at $18.8 trillion in the second quarter of 2026, including $1.26 trillion in credit card balances. The eight steps below turn “I need to get out of debt” into a plan with a finish date.
Step 1: List Every Debt You Owe
You can’t plan around numbers you haven’t looked at. Pull your statements and your free credit reports from AnnualCreditReport.com, and write down each debt in one place:
| Debt | Balance | APR | Minimum Payment | Due Date |
|---|---|---|---|---|
| Credit card 1 | $ | % | $ | |
| Credit card 2 | $ | % | $ | |
| Car loan | $ | % | $ | |
| Student loan | $ | % | $ | |
| Other | $ | % | $ |
Add up the total and the total minimum payments. That minimum total is your floor: it must be paid every month no matter what. Everything you can pay above it is your “extra” — the number that decides how fast you finish.
Working with a specific balance? Our breakdown of how to pay off $5,000 in credit card debt shows the exact monthly payment for 6, 12 or 24 months.
Step 2: Stop Adding New Debt
Paying down balances while new ones build up is like bailing water without plugging the leak. While you’re on the plan:
- Take your credit cards out of your wallet and remove them from saved payment methods online.
- Avoid “buy now, pay later” plans — they are easy to stack up and easy to lose track of.
- Switch everyday spending to a debit card or cash so you only spend what you have.
- Don’t close old paid-off cards yet; closing them can reduce your available credit and hurt your score.
Step 3: Keep a Small Emergency Buffer
One of the main reasons people stay stuck in debt is that the first surprise expense — a car repair, a medical bill — goes straight back on a card. Before attacking your debt aggressively, set aside a starter buffer of around $1,000 in a separate savings account. Once the high-interest debt is gone, you can build it into a full three-to-six-month fund; our guide on building an emergency fund covers that.
Step 4: Choose Your Payoff Order
Pay the minimum on every debt, then send all your extra money to one target. When that debt is paid off, add its payment to the next target. There are two popular ways to pick the order:
The Avalanche Method (Highest Rate First)
Target the debt with the highest interest rate first. This always costs the least interest overall, and it matters most when you carry large balances on high-rate credit cards.
The Snowball Method (Smallest Balance First)
Target the smallest balance first, regardless of rate. You’ll clear your first debt sooner, which many people find keeps them motivated to continue.
In our month-by-month calculations on realistic debt mixes, the avalanche saved roughly $174–$500 in interest compared with the snowball, and both finished in the same month. The difference was real but modest — the extra payment made far more difference than the order. Run your own debts through our Debt Payoff Calculator to compare both.
Step 5: Find Extra Money to Put Toward Your Debt
This is the step that changes your timeline the most. Here’s what the extra payment does on a $12,000 credit card balance at 22% APR (our calculation, fixed monthly payment, no new charges):
| Monthly Payment | Time to Pay Off | Total Interest |
|---|---|---|
| $240 | 137 months (~11.4 years) | ~$20,800 |
| $440 (+$200) | 39 months (~3.2 years) | ~$4,800 |
| $640 (+$400) | 24 months (2 years) | ~$2,800 |
At 22% APR, that balance generates about $220 of interest in the first month, so a $240 payment barely touches the principal. An extra $200 a month saves more than eight years and roughly $16,000. Places to find it:
- Your three biggest costs first: housing, transport and food usually offer more savings than cutting small treats.
- Subscriptions: review your bank statements for recurring charges you no longer use.
- Things you no longer need: electronics, furniture, clothing and tools can be sold locally or online.
- Extra income: overtime, a temporary side job or freelance work — every dollar can go straight to the target debt.
- Windfalls: tax refunds, bonuses and cash gifts are ideal lump-sum payments.
A simple budget makes this sustainable — our Budget Calculator shows where your money goes each month.
Step 6: Lower Your Interest Rates
- Ask your card issuer for a lower rate. A polite call that mentions your payment history costs nothing. It doesn’t always work, but even a few percentage points help.
- Consider a 0% balance transfer card. It can save a lot if you can pay the balance off within the promotional period. Watch for transfer fees (commonly 3–5%) and the rate after the promotion ends.
- Consider a consolidation loan only if it lowers your rate. Combining several high-rate debts into one lower-rate personal loan can help — but only if you don’t run the cards back up.
- Talk to a nonprofit credit counselor. Agencies affiliated with the National Foundation for Credit Counseling can review your budget for free and may set up a debt management plan with reduced rates.
A stronger credit score helps you qualify for lower rates — see how credit scores work and how to improve yours.
Step 7: Track Your Progress
Update your debt list once a month and note the total. Watching the number fall is one of the strongest motivators there is. Mark milestones — your first debt paid off, 25% of the total gone, halfway — and give yourself a small, cash-paid reward for each one.
Step 8: Redirect the Money Once You’re Debt-Free
When the last balance hits zero, keep making the same total payment — just send it to yourself. First top up your emergency fund to three to six months of expenses, then start investing consistently. If you were putting $600 a month toward debt, that same $600 invested over time can build real wealth. Our guide on investing in index funds is a good place to start.
When to Get Professional Help
- You can’t cover even the minimum payments on all your debts.
- You’re using one card to pay another, or borrowing to pay bills.
- Debt collectors are contacting you, or you’re facing wage garnishment or a lawsuit.
In any of these cases, start with a free session at a nonprofit credit counseling agency. Be cautious with debt settlement companies: settlement usually requires stopping payments to creditors, which can seriously damage your credit and lead to fees, and forgiven debt may count as taxable income. The CFPB has free guidance on debt collection and your rights.
Frequently Asked Questions
What is the fastest way to get out of debt?
Increase the amount you pay above the minimums and point all of it at one debt at a time, rolling each freed-up payment into the next. The avalanche order (highest interest rate first) costs the least in interest; the snowball order (smallest balance first) gives quicker wins. The size of your extra payment has a much bigger effect on speed than which order you pick.
Should I save money while paying off debt?
Yes, a little. Keep a starter emergency fund of around $1,000 so a surprise bill doesn’t go back on a credit card, then focus on high-interest debt. Once that debt is gone, build a full three-to-six-month emergency fund.
How do I get out of debt on a low income?
Start with a full list of your debts and a bare-bones budget, then look for any extra $25–$100 a month: cancel unused subscriptions, sell items you no longer need, or take on occasional extra work. Call your card issuers to ask for lower rates, and consider free nonprofit credit counseling, which can sometimes negotiate lower rates through a debt management plan.
Is it better to pay off debt or invest?
Always take any employer 401(k) match first. After that, paying off debt above roughly 7–8% APR is usually the better move, because it is a guaranteed return. For low-rate debt, many people invest and pay the minimum at the same time.
How long does it take to get out of debt?
It depends on your balances, rates and how much extra you pay. As an example, $5,000 at 20% APR paid only at a typical minimum takes about 19 years; paying a fixed $200 a month clears it in about 33 months. A debt payoff calculator will give you your own timeline.
Is debt settlement a good idea?
Usually only as a last resort. Settlement typically requires you to stop paying creditors while a company negotiates, which seriously damages your credit, can lead to fees and lawsuits, and forgiven debt may be taxable. Talk to a nonprofit credit counselor before signing up with any settlement company.
Related guides: how to pay off credit card debt and how to pay off student loans faster.
Disclaimer: This article is for informational purposes only and is not financial or legal advice. Example figures are our calculations based on the stated assumptions; your results will depend on your specific debts and terms.
