List all debts with balance, interest rate, minimum payment, and due date
Set a monthly budget that includes minimum payments for every debt
Stop adding new debt and pause nonessential spending
Build a small emergency fund (at least $500–$1,000) to avoid new charges
Choose a payoff method: avalanche (highest interest first) or snowball (smallest balance first)
Pay minimums on all debts
Direct every extra dollar to the target debt
Make payments on time to avoid late fees and added interest
Consider refinancing, balance transfers, or debt consolidation to lower interest rates
Call creditors to ask about hardship programs, reduced APR, or fee waivers
Increase income with overtime, side work, selling unused items, or temporary budget cuts
Use windfalls (tax refunds, bonuses, gifts) to pay down the target debt
Track progress monthly and update payoff plan as balances change
Avoid closing credit accounts unnecessarily; monitor credit utilization
Consider negotiating settlements only if you can pay a lump sum and understand tax/credit impacts
If overwhelmed, contact a reputable credit counseling agency to review options
Reassess the plan if interest rates, income, or expenses change