Getting Out of Debt: Your Options

Carrying debt is stressful, but there's almost always a path forward. The right option depends on how much you owe and what kind of debt it is. Here's a plain-English overview.

Start with a budget

Before anything else, list what you owe, the interest rates, and your monthly income. Paying down the highest-interest balances first (the "avalanche" method) usually saves the most money over time.

Consolidation and relief programs

If you have several balances, a consolidation loan can combine them into one payment, often at a lower rate. For larger unsecured balances (commonly $10,000 or more), a debt relief or settlement program may negotiate with creditors to reduce the total you owe. These programs have trade-offs, so it's worth understanding the terms and any impact on your credit before you enroll.