Strategies to Pay Off High-Interest Debt

High-interest debt—especially credit card debt—can feel like a weight that never gets lighter. But with the right strategy and consistent effort, you can break free. Here are the most effective approaches.

The Avalanche Method

List all your debts by interest rate, from highest to lowest. Make minimum payments on everything, then put every extra dollar toward the highest-rate debt. Once that's paid off, move to the next highest. This method saves you the most money in interest over time.

The Snowball Method

List your debts by balance, from smallest to largest. Pay minimums on everything and throw extra money at the smallest balance first. The psychological win of paying off a debt quickly builds momentum and motivation. This method works best if you need early wins to stay motivated.

Consolidate at a Lower Rate

If you have multiple high-interest debts, consider a debt consolidation loan from your credit union. You may qualify for a significantly lower rate, which means more of your payment goes toward the actual balance instead of interest. BrightStar Credit Union offers personal loans that can be used for debt consolidation.

Negotiate With Creditors

Many creditors will work with you if you're struggling. Call and ask about hardship programs, lower interest rates, or modified payment plans. The worst they can say is no—and many will say yes.

Stop Adding to the Balance

This is the hardest but most important step. While you're paying off debt, switch to cash or debit for everyday spending. Remove saved credit cards from online shopping accounts to reduce temptation.

Find Extra Money

Look for ways to temporarily increase your debt payments: sell items you no longer need, pick up a side gig, redirect your tax refund, or cut back on one discretionary expense and put that money toward debt.

Getting out of debt takes time and discipline, but every payment brings you closer to financial freedom. Start today—future you will be grateful.