Debt can feel daunting, but it doesn’t have to keep weighing you down. If you’re committed to the cause, you can pay it off — no matter how much you owe.
You’re certainly not alone in carrying debt. In the second quarter of 2025, Americans owed $5.04 trillion in non-housing debt — including $1.21 trillion in credit card debt — according to the Federal Reserve Bank of New York.
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If you’re living paycheck to paycheck, the best way to pay off debt varies by the total amount owed, credit score and income stability, said Emi Gjini, certified financial planner (CFP) and founder of MyGen Planning. Determining what you owe is the first step toward determining the right approach.
To get you started, here is the most practical way to pay off your debt.
The Best Way To Pay Off Under $10K in Debt
If you owe under $10,000, you might consider the debt snowball method or the debt avalanche method. Using the former method, you pay off the debt with the lowest balance first, while the latter has you paying off the debt with the highest interest rate first.
“The key to get out of this debt level is to make sure you don’t rack up new debt while paying off the old, she said.
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The Best Way To Pay Off $10K to $20K in Debt
Debt consolidation might be a better option if you owe $10,000 to $20,000, she said. This will involve creating a debt management plan with a nonprofit credit counselor, who will negotiate lower interest rates with your creditors.
Instead of paying each debt separately, you’ll make one monthly payment. Pay attention to fees if you opt for this approach, she said.
The Best Way To Pay Off $20K to $50K in Debt
If the amount of debt you owe is in the $20,000 to $50,000 range, a debt consolidation loan may be the most practical route, she said.
“DMPs are usually best for those with decent income, but no extra cash flow,” she said. “The program simplifies your payments and may reduce your total interest paid by thousands.”
Alternately, she said a personal loan for debt consolidation could be another option if your credit score is solid — at least 720 — and you can qualify for a lower fixed interest rate than is currently attached to your credit cards. “Just be cautious of origination fees and the total loan cost,” she said.
Common Mistakes To Avoid
Taking steps to pay off debt is a major step toward improving your financial health. However, Gjini said people make several common mistakes that can hinder their progress. This includes only making minimum payments, opening a new credit card while paying off old debt and not taking the time to understand why you got into debt in the first place.
“Solving the root cause is key to staying out of debt once you’re free,” she said.
After working hard to pay off debt, racking up more is probably the last thing you want to do. Therefore, it’s important to address the issue and make any necessary changes, to avoid getting back into the same situation.
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This article originally appeared on GOBankingRates.com: The Most Practical Way To Pay Off $10K, $20K or $50K in Debt
