List your debts using a spreadsheet, pencil and paper, or debt settlement app. Enter the balance, the interest rate and the minimum monthly payment. Make sure you consider all forms of debt, such as: B. Buy now and pay for loans later.

Then, look at your income and expenses to see how much money you are putting on debt and where you can cut expenses. For example, if you’re spending more on restaurants than you did six months ago, try reducing that to free up cash to pay off debt.

Next, choose a strategy for the payout. Here are a few common tactics:

– SCHULDSSCHNEEBALL: With that Debt snowballfocus your debt settlement energy on the smallest balance first, while making minimal payments for the rest. Once the smallest debt is dismissed, roll the amount you paid for it to the next smallest debt. As you pay off more debt, the payment amount grows like a snowball until you are out of debt.

– DEBT LAWINS: With this method, you settle the debt with the highest interest rate first. Then, similar to the debt snowball method, once it’s paid off, cascade the payment with the next highest interest rate on your debt.