Financial Literacy Month 2026: 10 Debt Payoff Strategies

Debt doesn’t have to define your financial future — here are 10 tips, plus resources to help you pay it down and move forward with confidence.

1. Start with a clear picture

Take time to understand exactly what you owe by ordering your credit reports from each of the three credit reporting companies at https://www.annualcreditreport.com/. Review your credit reports and statements and list your balances, interest rates and payment amounts so you can move forward with confidence.

2. Build a budget that works

A realistic budget is one of the most effective tools for paying down debt — it can help you track spending and identify areas to cut back so you can put that money toward paying down balances instead. Experian’s bill and subscription manager can help you spot and cut subscriptions you no longer need, freeing up more money to put toward your debt.

3. Consider different payoff strategies to find the one that works best for you.

With the snowball method, you focus on paying off the accounts with the smallest balances first to gain momentum. With the avalanche method, you focus on paying down the debt with the highest interest rate first, saving you the most on fees over time. The important thing is to choose a method you think will work best for your situation.

4. Always pay at least the minimum due

Making at least the minimum payment on time helps you avoid adding late fees to your debt and protects your credit from late payments. From there, you can focus on paying more whenever possible.

5. Put any extra money toward your debt

Even small additional payments can make a difference over time. Applying tax refunds, bonuses or other unexpected income to your debt can help you make progress faster.

6. Avoid adding new debt

As you work to pay down balances, focus on separating wants from needs and try to limit taking on new debt. Staying focused on your current goals and sticking to your budget can help you make steady progress.

7. Automate your payments

Setting up automatic payments can help ensure you never miss a due date and save you from having to pay late fees. It’s a simple way to help ensure that you are protecting the payment history on all your accounts while you work to pay down debt.

8. Celebrate progress along the way

Recognizing payoff milestones can help you stay motivated. Just be sure your celebrations fit within a reasonable budget so your progress isn’t derailed.