If you have debt you need to pay off, you’re not alone — the average American household carried $154,152 of debt at the end of 2025, according to data from the Federal Reserve Bank of New York. While that figure includes mortgages — which are generally considered a form of good debt — it also comprises credit card balances, auto loans, and other debts.
There are a few options for paying off debt: You could partner with a credit counselor or a debt relief company, or consider a balance transfer credit card. There’s also the debt avalanche or snowball method, which builds momentum by focusing on paying down debts with the lowest interest rate or the lowest balances first.
To figure out which one is the right fit for you, CNBC Select…