Quick Answer: Becoming debt free starts with creating a clear payoff goal, organizing what you owe, and choosing a repayment strategy that fits your budget. With focus and consistency, you can regain control of your finances and build lasting peace of mind.

In the third quarter of 2025, Americans held a record $18.59 trillion in household debt, highlighting both a common challenge and an opportunity. By taking small, intentional steps, you can make steady progress, reduce interest costs and reach your financial goals faster.

Step 1: Define Your Debt-Free Goal

The journey to becoming debt free begins with a clear vision. Ask yourself what being debt free means to you. Is it less financial stress? More savings? Or having the freedom to pursue new goals? Write down your motivation and use it as a reminder when progress feels slow.

Step 2: Organize What You Owe

Next, calculate your total debt. Include all loans, credit cards and lines of credit. Knowing your complete balance helps you see the big picture and gives you a realistic target to work toward.

Gather your statements and create a simple list of debts, including:

• Creditor name
• Total balance
• Minimum monthly payment
• Interest rate

This list will help you prioritize which debts to tackle first. Many people are surprised to see just how much interest adds up each month and how small changes in payment strategy can save hundreds over time.

Step 3: Choose a Repayment Method

Managing debt requires a strategy. Two of the most effective strategies are:

• Debt Snowball: Start by paying off your smallest balance first while making minimum payments on the others. Each time you eliminate a debt, roll that payment into the next balance.
• Debt Avalanche: Focus on the debt with the highest interest rate first. This method saves the most money in the long run by reducing total interest paid.

If you’re struggling to manage multiple payments, consider a debt consolidation loan. Combining high-interest debts into one fixed monthly payment can make your plan more manageable and get you closer to your goal faster. A Home Equity Line of Credit (HELOC) is also a good option to consolidate debt into one payment.

Step 4: Stay Consistent and Celebrate Milestones

Becoming debt free takes time, but staying consistent pays off. Track your progress monthly, adjust your budget as needed, and celebrate small wins along the way. As you work on this goal, stay mindful of your spending habits and make small changes to keep on track and achieve long-term financial success.

Take the First Step 

Whether you need help choosing a repayment strategy or exploring consolidation options, Clark County Credit Union is here to guide you. Visit www.CCCULV.org or call 702-228-2228 to start your debt-free journey today.