April 1, 2026
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Debt Management

Pay down debt.

Couple paying down debt

If you’ve been following our Financial Wellness Journey, you’ve likely already tracked your spending and created a monthly budget. Now it’s time for the next step: building a realistic plan to pay down your existing debt so you can move closer to financial freedom.

1. Start with your budget

To make real progress on debt, you need to know your income, expenses, and cash flow. If you haven’t built a budget yet, go back to our earlier step in the Financial Wellness Journey for a simple guide to tracking your spending and setting up a budget that works for you.

2. Get organized by listing all your debt

Next, gather everything you owe in one place. Write down each credit card and loan with the current balance, your interest rate, and the minimum monthly payment.

Add up your balances to see your total debt. Having this full picture will help you choose the best payoff strategy and stay motivated as you watch the numbers go down.

DebtInterest RateAmount Owed
Credit Cards
Credit Card 1
24.10%
$2,000
Credit Card 2
18.90%
$1,500
Credit Card 3
22.40%
$1,200
Personal Loans
Loan 1
15.00%
$2,300
Loan 2
11.20%
$3,400
Student Loans
Loan 311.20%$3,400
Total Debt
$10,400

3. Free up extra cash for payments

The more room you create in your budget, the faster you can pay down what you owe. Look for non-essential expenses you can temporarily trim and redirect those dollars to your highest-priority debt. You might also explore ways to boost income—such as a side job, freelancing, or selling items you no longer use—to add even more power to your monthly payments.

4. Choose your payoff strategy

There are two popular, proven methods for paying down multiple debts:

  • Snowball method: Focus extra payments on your smallest balance first while making minimum payments on all others. Once it’s paid off, roll that payment to the next smallest balance. This can build quick wins and momentum.
  • Avalanche method: Focus extra payments on the debt with the highest interest rate while paying the minimum on the rest. When that’s paid off, move to the next-highest rate. This approach usually saves you the most money over time.

Pick the method that best fits your personality—whether you’re motivated by early wins or by maximizing interest savings.

5. Talk to your creditors

Once you’ve started your repayment plan, consider calling your credit card companies and other lenders. Many are willing to discuss options like lowering your interest rate or adjusting your terms if you show you are committed to paying down your balance. Even a small rate reduction can help more of your payment go toward principal instead of interest.

6. Consider consolidating what you owe

If juggling multiple payments feels overwhelming, a consolidation strategy may help simplify things. Rolling several higher-rate balances into one lower-rate loan can mean:

  • A single monthly payment
  • A clearer payoff timeline
  • Potential interest savings

You might explore an Everwise Personal Loan to consolidate higher-interest debt into one predictable payment, or a balance transfer to an Everwise Visa® Platinum credit card. Our Visa Platinum and Visa Signature Rewards credit cards currently charge a balance transfer fee of either $10 or 2% of each balance transfer, whichever is greater, so be sure to factor this into your calculations to confirm it’s the right move for you.

7. Be cautious with debt settlement offers

Debt settlement companies often promise quick fixes, lower payments, or fast credit score improvements—for a fee. While some may be legitimate, others can be costly or even fraudulent. If you’re considering this route, research carefully, check reviews and complaints, and understand all fees and potential impacts to your credit before you commit.

8. Build an emergency cushion and avoid new debt

As you work your plan, start setting aside money for emergencies so an unexpected expense doesn’t send you back into debt. Including emergency savings in your budget can help you cover surprise bills without relying on credit cards.

Paying down debt takes time, consistency, and patience—but every payment brings you closer to living with less stress and more financial confidence.


Free Online Learning

Dive deeper into paying down debt.

Boost your financial know-how in just minutes. Explore these quick, free online modules designed to build your financial confidence.

Debt management

Learning how debt works and creating a plan can help you take control and move forward with confidence.

Healthy financial habits

Developing healthy financial habits can help you feel more confident, prepared, and in control of your finances.

The information provided is accurate as of the publication date and is for educational purposes only and doesn’t constitute financial, tax, legal, or accounting advice. It is to be considered as general information, not recommendations. Please consult with an attorney, financial, or tax professional for guidance.

Subject to membership eligibility requirements. Loans subject to credit approval. Borrower must be a resident of Indiana or Michigan, and for home loans property must be in Indiana or Michigan. All credit union programs, rates, terms, and conditions may change without notice.

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