Day 7: Accelerate Debt Payoff
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Managing Editor This is the 7-Day Financial Reset, a weeklong challenge designed to help you start the new year off strong. We’ll guide you through one practical money task each day, so you can build habits that make your finances work better for you.
A new year brings new motivation. That’s why taking steps to “accelerate debt payoff” is the perfect end to our 7-day financial reset.
The number of consumers carrying a credit card balance hit 174.8 million in the third quarter of 2025, according to a report from credit bureau TransUnion. Are you one of them? Like with exercise, the best way to make progress on debt is to start moving.
Pick up the pace and pay less interest over time. Here's how to do it:
- Check your emergency fund: If you don’t have an emergency fund, you may need to build up some savings first. That can mean paying minimums on debt until you have at least a starter fund of $500 to $1,000. Even a small amount can save you from going deeper into debt in the event of an unforeseen expense.
- Pay more than the minimums: If your emergency fund is set, increase the amount you put toward your loans to pay them off faster. You can make it manageable by paying more on one debt at a time. Keep up with the minimums on the rest.
- Get a quick win to build steam: Try the debt snowball method if you find small victories motivating. Make a list of all your debts from the smallest balance to largest. Tackle the loan with the smallest balance first, then move to the next.
- Focus on high-interest loans to save more: To save more money in the long run, try the debt avalanche method. List out your debts from highest interest rate to lowest and pay extra on the most expensive loan first. For example, you’d put extra money on a credit card with an exorbitant APR over a buy now, pay later plan that doesn’t charge interest.
- Consider debt consolidation: A 0% interest balance transfer credit card is one way to consolidate the debt if you have a credit score of 690 or above. Ideally, you’ll pay off the total balance during the promotional period to cut down on interest and simplify your life.
What else can you do? Look for ways to cut costs and save money. The more money you have to put toward your debt, the faster you can pay it off. Maintain the momentum as the year goes on, and get financially fit.
» Need to back up a bit? Day 6: Boost retirement savings
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