Snowball or avalanche? The best debt repayment plan depends on one thing

According to a new study by the Century Foundation, approximately 111 million Americans are unable to pay off their credit card bills each month.That’s half of all Americans with a credit card, and 40% of all adults!Credit card debt can be exceptionally challenging to manage because it often compounds at high interest rates and is typically utilized for consumer spending rather than appreciating assets (unlike a mortgage).

Since January 2025, Americans have paid $240.7 billion (with a “b”) in credit card interest charges.And credit card interest rates are sitting at an all-time high.Austin Kilgore, an analyst with the Achieve Center for Consumer Insights at Achieve, says, “There is no one-size-fits-all answer to debt.

Consumers should consider their unique financial circumstances, goals and spending patterns when determining the best way to pay down debt and improve their financial health.”According to a Fall 2026 survey by Freedom Debt Relief and Money.com, the problem isn’t a lack of effort.Sean Fox, president of Freedom Debt Relief, notes, “Many people are already making difficult tradeoffs and actively looking for a way to improve their financial situation, yet they’re still struggling because they don’t know where to start.” The desire for a clear path forward is so strong that 79% of borrowers surveyed said they would willingly accept a drop in their credit score if it meant becoming debt-free faster.It’s no wonder that many Americans feel like they are drowning in debt without a lifeline.

There are two popular debt retirement strategies, however, that have worked for people and are worth considering if you are ready to get down to business and address your debt: the snowball and the avalanche methods.Michael McAuliffe, CEO and president at Family Credit Management, says, “Getting out of debt is not just about math, it’s about motivation and behavior.Like any major goal in life, people need encouragement along the way.

You don’t...