Get out of debt
Cut the interest rate first, then attack the balance. Doing it in the other order wastes months.
Who it is forAnyone carrying a revolving balance at a double-digit rate.
- 01
Move the expensive balance
A 0% promotional transfer with a 3% fee beats a 20.99% card as long as you clear most of it before the promotion ends.
Do thisDivide the balance by the promotional months and pay exactly that.
Balance transferDebt - 02
Consolidate what will not transfer
An instalment loan at 9% to 14% still beats revolving credit, and it has an actual end date.
Do thisOnly consolidate if you also close the spending gap that created the balance.
Personal loanDebt - 03
Use home equity carefully, if at all
A HELOC is the cheapest rate available to most households and the easiest to abuse, because nothing forces principal repayment.
Do thisIf you draw on it, set a fixed principal payment yourself.
HELOC limitHousing - 04
Check whether refinancing clears
Breaking a mortgage costs a penalty. It is worth it only if the payment saving repays that penalty well before renewal.
Do thisFind the break-even month and compare it to how long you plan to stay.
Refinance break-evenHousing - 05
Give every surplus dollar a job
Avalanche saves the most interest; snowball is easier to stick with. Finishing matters more than optimising.
Do thisAutomate the extra payment so it is not a monthly decision.
Budget plannerIncome & tax
Why minimum payments never end
On a $10,000 balance at 20.99%, a minimum payment of roughly 2% of the balance takes about 27 years and costs more in interest than the original debt. Any fixed payment above the minimum collapses that timeline dramatically.
Run it on your own numbersBalance transferA 0% promotion with a transfer fee, against staying where you are.