5 Ways to Manage
Your Debt in 2024

DO any of these sound like you?

• You rely on your credit card to make ends meet and the APR keeps increasing.
• You have medical bills piling up.
• An unexpected visit to the animal hospital set you back (but you’d do anything for your four-legged friend).

If so, you’re not alone.

U.S. household debt hit $17.29 trillion in the third quarter of 2023.¹ What’s more, a recent report found the average consumer has a credit card balance of over $6,000.² Fortunately, there are smart, proven ways to manage debt so you could move on to a brighter financial future. Ready to get started? Consider taking these five actionable steps to effectively manage your debt in 2024.

1. Audit Your Debts

The first step to paying off debt isn’t making a payment—it’s getting a handle on how much you owe and how much interest you’re paying each month on any outstanding balances. Take a close look at your monthly statements to identify each debt’s balance, interest rate, and repayment terms. Depending on the type of debt and your creditor, you may be able to negotiate a lower interest rate, and, in turn, you could save money while you work to pay down the balance.

2. Set a Realistic Budget

Next, it’s important to set a budget. Taking stock of your finances will help you see every dollar that comes in and goes out. If you receive child support or government benefits, these should factor into what you have on hand to make ends meet every month. This act of deliberate budgeting could allow you to start paying down your current debt while helping you avoid future debt.

3. Have a Debt Payment Strategy

Credit cards typically have high interest rates, so try to make paying off credit card debt a priority, while still making minimum payments on all other debts. Once the debt with the highest interest rate is paid off, you put the money from that payment towards the next debt with the highest interest rate until all debts are paid. In doing so, you could lower the overall amount of interest you have to pay while climbing out of debt.

If you’d rather score a quick win to get you motivated, consider making minimum payments on all your debts and put extra money toward the smallest debt balance. Once that debt is paid off, you put the money from that payment towards the next smallest debt balance until all your debts are paid off.

4. Consolidate Your Debt

Debt consolidation entails combining multiple debts into a personal loan with one single monthly payment. This could simplify your debt repayment and potentially save you hundreds, or even thousands, of dollars by consolidating higher-interest debt into a loan with a lower interest rate. A Discover® personal loan offers a fixed interest rate, flexible repayment terms, and no fees of any kind as long as you pay on time. This approach could take the guesswork out of paying off your debt. Plus, you can apply in minutes, and the money can be sent as early as the next business day if you’re approved for and accept the loan.⁵

To see how much you could save with a Discover personal loan, check out this debt consolidation calculator.

5. Take Small, Deliberate Steps

Debt can feel overwhelming, but you could achieve a brighter financial future if you take steps now to consolidate high-interest debt. Your next step? Get on the phone with a U.S.-based Discover® Personal Loans specialist who can talk you through loan options and help you complete your application. In most cases, you can get a same-day decision. That means you could start stressing less about your finances and focusing on what is important to you and your family.