If you’re carrying over $20,000 in credit card or other high-interest debt, you’re not alone—and you’re not stuck. With the right strategy, you can reduce what you owe, lower your interest, and start making real progress toward financial freedom.
Let’s break it down step-by-step.
Step 1: Get Clear on What You Owe
Before anything else, get a full picture of your current debt situation. Knowing what you’re working with helps you create a plan that actually works.
Make a list of each debt, including:
- Balance
- Interest rate
- Minimum monthly payment
- Due date
- Type of debt (credit card, loan, etc.)
Step 2: Prioritize High-Interest Debt
Credit cards and payday loans often have interest rates over 15–30%, which means you’re losing money every month to interest alone.
To manage it effectively:
- Separate your debts into high-interest vs. low-interest
- Focus on the ones with the highest rates first—they’re the most expensive to carry
Step 3: Explore Your Payoff Options
1. Debt Consolidation Loans
This involves combining multiple debts into one fixed monthly loan, ideally at a lower interest rate. It’s a great option if you want to simplify your finances and potentially lower your monthly payments.
Pros:
- One easy monthly payment
- Lower interest rate (if you qualify)
- Fixed timeline for repayment
- They will negotiate your debt load for you and will reduce it by 40% or more
Tip: Only pursue this if you qualify for a lower rate—and avoid racking up new debt while repaying the loan.
See if you’re eligible: