Debt reduction: how to cut balances and interest

Debt reduction means shrinking balances and interest over time — not just moving debt to a new product. A workable plan protects minimums, adds a consistent extra, and measures progress with a debt-free date.

Protect every minimum

Missing minimums triggers fees and penalty APR. List every account first, then decide where extras go. Our debt payoff calculator keeps minimums on all debts while you allocate extra.

Choose snowball or avalanche

Snowball reduces account count quickly; avalanche minimizes interest. Compare both in snowball vs avalanche, then lock a strategy for at least a few months.

Use extras on installment loans

Auto and personal loans respond well to principal-only extras. Model savings with the extra loan payment calculator or debt avalanche calculator for multi-debt plans.

Watch DTI as balances fall

As payments drop, your DTI improves. Recheck with the DTI calculator before taking on new credit.