Strategies to Tackle Debt and Get Financially Free

If you're feeling overwhelmed by debt, you're not alone. It can feel like you're drowning in payments, interest rates, and accounts to keep track of. The key to getting back on track is to face your finances head-on—not hide from them. Let’s break down three strategies to get your debt under control, whether you're just starting or already deep in.

The Snowball Method

This method is great if you need small wins to stay motivated. Here's how it works: Start by listing all your debts, but focus on the balances. Pay off the smallest balance first while making minimum payments on the rest. Once you knock that out, take the money you were paying on the first debt and apply it to the next smallest balance, and so on. You’ll see debts disappear one by one, giving you momentum!

The Waterfall Method

If you’re more concerned with getting out of high-interest debt, the Waterfall method is for you. Instead of focusing on the smallest balance, look at the interest rates. Target the highest interest debt first (the ones that are probably draining you at 25-30%), and pay as much as you can toward that one while making minimum payments on the others. This saves you money in the long run because you're knocking out the most expensive debt first.

Consolidate with a HELOC

If you own a home, consolidating your debt with a HELOC (Home Equity Line of Credit) can be a powerful option. You’ll need at least a 640 FICO score, but you could consolidate up to $25,000—or more—into one payment at a much lower interest rate. Most HELOCs range from 9-11%, depending on your credit. You can also choose a flexible repayment term, from five to 30 years. Imagine reducing all your debt to one lower monthly payment—it’s worth considering.

Other Options to Consider

You’ve probably seen those balance transfer offers with 0% interest for 16 months or longer. These can be great if you can pay off the balance before the promotional period ends. Yes, there's usually a fee (around $300), but it's a lot better than getting hit with 30% interest!

The Bottom Line

The most important step? Don’t bury your head in the sand. Write down every single account, balance, and interest rate, and then create a plan. Whether it's the Snowball, Waterfall, or HELOC method, there's a solution for you. The goal is to get you back on solid financial ground—step by step.