Strategies For Paying Down Consumer Debt
- jennynekennedy
- Aug 11
- 3 min read
Updated: 6 days ago
by Jeffery A. Keill, CFP, CIM, FMA, FCSI, CEA

Consumer debt can leave you feeling like you are drowning in a sea of bills. Swimming against the current and unable to touch the bottom. Being in over your head in debt leaves a feeling of despair and regrets. How did I get to this? How can I ever get out of it? Let’s look at a few simple strategies that can be used if you are serious about changing your financial life. With the right strategies, discipline, and a clear plan, you can make it back to the shore.
Before diving into strategies, it’s important to understand what consumer debt encompasses. Typically, this includes credit card balances, personal loans, and lines of credit. Unlike mortgages or student loans, consumer debt often carries higher interest rates, making it more challenging and expensive to manage if left unchecked.
The first step toward financial freedom is knowing the details of what you owe. Create a comprehensive list of all your consumer debts, noting the following for each:
Outstanding balance
Interest rate (APR)
Minimum monthly payment
Due date
Lender information
A clear, consolidated view helps you prioritize your repayment plan and avoid missed or late payments.
Here are few powerful debt repayment strategies our Advisory Team considers when helping clients with consumer debt:
The Snowball Method
With this approach, you pay off your smallest debt first while making minimum payments on all other debts. Once the smallest is paid off, you roll its payment into the next smallest, creating a “snowball” effect. This method offers quick wins and psychological motivation as debts disappear one by one and line by line. Seeing certain debts be paid and removed from your list of debts boosts morale and encourages continuation of the process.
The Debt Avalanche Method
Here, you focus on paying off the debt with the highest interest rate first, while making minimum payments on the rest. When that’s cleared, you tackle the next highest, and so on. Though is may take longer to see a debt disappear, this method saves you more money in interest over time.
Hybrid Method
If you are wondering which of the two methods above are better, maybe both could work for you. You may not need to limit yourself to using one method. Some find success blending the two methods-perhaps eliminating small, nagging debts with the snowball, then switching to tackle hefty interest rates with avalanche. The best strategy is the one you can stick to.
Consolidation
Debt consolidation combines multiple debts into a single loan-often at a lower interest rate. This not only simplifies your payments but can also reduce your overall monthly outlay. Common consolidation tools include personal loans, balance transfer credit cards, lines of credit. Be cautious, though: consolidation is a tool not a cure. Without good spending habits, you risk accumulating new debts on top of the consolidated loan.
Final Comments
Paying down debt is as much about changing behaviour as managing numbers. Learning to distinguish between wants and needs is monumental, since overspending is most often based on a irrational distinction between these two. You can have wants, but we must clearly see them as such. By understanding your financial landscape, setting clear goals, and applying the strategies discussed above, you can regain control and move confidently toward a brighter, debt-free future.
last edit August 13, 2025
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