📅 Updated: July 2026 · Written by Tom · 14 min read

How to Get Out of Debt Fast: The Two Methods That Actually Work

Getting out of debt is not complicated, but it is hard. There are exactly two methods that work: the debt snowball (pay off the smallest balance first) and the debt avalanche (pay off the highest interest rate first). Everything else — balance transfers, debt consolidation loans, credit counseling — is just a way to make one of those two methods easier. I paid off $28,000 in credit card debt over three years using the avalanche method, and here's what I learned.

The math says avalanche is better. The psychology says snowball is better. The right answer depends on whether you need motivation or math.

The debt snowball: motivation first

The debt snowball is simple: list all your debts from smallest balance to largest balance (ignore interest rates). Pay the minimum on all of them, then throw every extra dollar at the smallest debt. When it's paid off, roll that payment into the next smallest debt. Repeat until you're debt-free.

Example: you have three credit cards: Card A ($1,200 balance, 22% APR), Card B ($4,500 balance, 18% APR), Card C ($8,000 balance, 15% APR). You pay minimums on all three ($24, $90, $160 = $274/month), then add $300/month extra.

• Month 1–4: throw the $300 extra at Card A. In 4 months, it's paid off. You now have $324/month to throw at Card B ($24 minimum + $300 extra).
• Month 5–20: throw $324/month at Card B. In 16 months, it's paid off. You now have $484/month to throw at Card C ($160 minimum + $324 extra).
• Month 21–36: throw $484/month at Card C. In 17 months, it's paid off. You're debt-free in 36 months (3 years).

Why it works: you get quick wins. Paying off Card A in 4 months feels good. You see progress. That motivation keeps you going when the larger debts feel overwhelming.

The downside: you pay more interest over time because you're not prioritizing the highest-rate debts. In the example above, you'd pay about $2,800 in interest. With the avalanche method, you'd pay about $2,200 — a $600 difference.

The debt avalanche: math first

The debt avalanche is the same idea, but you list debts from highest interest rate to lowest interest rate (ignore balances). Pay the minimum on all of them, then throw every extra dollar at the highest-rate debt. When it's paid off, roll that payment into the next highest-rate debt.

Example: same three cards: Card A ($1,200 balance, 22% APR), Card B ($4,500 balance, 18% APR), Card C ($8,000 balance, 15% APR). You pay minimums on all three, then add $300/month extra.

• Month 1–6: throw the $300 extra at Card A (highest rate, 22%). In 6 months, it's paid off. You now have $324/month to throw at Card B.
• Month 7–20: throw $324/month at Card B (next highest rate, 18%). In 14 months, it's paid off. You now have $484/month to throw at Card C.
• Month 21–37: throw $484/month at Card C (15%). In 17 months, it's paid off. You're debt-free in 37 months (just over 3 years).

Why it works: you pay less interest over time. In the example above, you'd pay about $2,200 in interest vs $2,800 with the snowball — a $600 savings.

The downside: it takes longer to see progress. If your highest-rate debt is also your largest balance, it might take 12–18 months to pay it off. That's a long time without a win.

Which one should you use?

If you need motivation and quick wins, use the snowball. If you're disciplined and want to save money on interest, use the avalanche. The difference in total interest is usually $500–$2,000 over the life of the debt payoff — it's not life-changing money. The life-changing part is actually paying off the debt, and if the snowball keeps you motivated, use it.

I used the avalanche because I'm a math nerd and I wanted to save the interest. But I've seen people quit the avalanche after 6 months because they didn't see progress, then switch to the snowball and pay off debt in half the time. The "right" method is the one you'll actually stick with.

You can see your own numbers in my loan payment calculator — it shows how extra payments change the payoff date and total interest for each debt.

How to find the money to pay extra

The minimum payments on my three credit cards were $274/month. That would have taken me 12+ years to pay off and cost me $8,000 in interest. The $300/month extra is what made the difference. Here's how I found it:

• Cut one subscription per month. I cancelled Netflix ($15), Spotify ($10), a gym membership I didn't use ($40), and a meal kit service ($60). That's $125/month right there.
• Cook at home 2 more nights per week. I was eating out 4–5 nights a week at $15–20 per meal. Cooking at home costs $5–7 per meal. Two fewer restaurant meals per week saves $40–60/month.
• Sell stuff. I sold old electronics, clothes, and furniture on Facebook Marketplace and Poshmark. I made $1,200 over 6 months — that went straight to the debt.
• Pick up one side gig. I did freelance writing for 3 months and made $2,000. That paid off one credit card entirely.

You don't need to do all of these. Pick 2–3 that fit your life and commit to them for 6 months. The extra $200–400/month will cut years off your debt payoff.

If you're trying to figure out how much you can afford to pay each month, my savings goal calculator works backward from your debt payoff date to tell you the monthly number.

Debt consolidation: when it helps, when it doesn't

Debt consolidation means taking out a new loan (usually a personal loan or balance transfer credit card) to pay off multiple debts. The idea is to simplify payments and/or lower the interest rate. It works if:

• You get a lower interest rate. If your credit cards are at 20%+ APR and you can get a personal loan at 8–12%, consolidation saves money. If you can't get a lower rate, it doesn't help.
• You stop using the credit cards. If you consolidate $10,000 in credit card debt, pay off the cards, then run them back up to $10,000, you've made the problem worse. Consolidation only works if you fix the spending habit.
• You can afford the new payment. A personal loan has a fixed payment over 3–5 years. Make sure you can afford it before signing.

Balance transfer credit cards (0% APR for 12–18 months) are a form of consolidation. They work if you can pay off the entire balance during the 0% period. If you can't, you're back to high interest after the promo ends — and you've paid a 3–5% balance transfer fee for the privilege.

I didn't consolidate because I couldn't get a lower rate (my credit score was 620 when I started). I just paid the high interest and focused on paying it off fast. If your credit score is 680+, shop around for consolidation loans — you might save 5–10% in interest.

The mistakes I made

• Only paying the minimums. I did this for two years. The balances barely moved because the interest was eating most of the payment. The day I started paying $300/month extra was the day I actually started making progress.
• Not tracking the payoff. I used a spreadsheet to track each debt's balance, interest rate, and payoff date. Seeing the numbers go down each month kept me motivated. If you don't track it, you'll forget why you're sacrificing.
• Using the credit cards "just once." I paid off one card, then used it for a $200 purchase. That $200 turned into $400 with interest, and I lost a month of progress. Once you start paying off debt, put the cards away. Literally freeze them in a block of ice if you have to.
• Not having an emergency fund. I was so focused on paying off debt that I didn't save anything. When my car broke down, I had to put $800 on a credit card. I now recommend saving $1,000–2,000 in an emergency fund before aggressively paying off debt — it prevents new debt when life happens.

Getting out of debt is not complicated: pay more than the minimum, pick a method (snowball or avalanche), and stick with it. It took me three years and a lot of sacrificed dinners out, but the day I made the final payment was the best financial day of my life. You can do it too — just start.

I paid off $28,000 in credit card debt over three years. This site is one person writing about money — not a firm, just what actually worked.