The best way to pay off debt is situational. Use this flowchart to find the right tools for you

The best way to pay off debt is situational, using a flowchart approach, connects repayment strategies to a household’s specific circumstances and debt profile. The article cites Federal Reserve Bank of New York data that the average American household carried $154,152 of debt at the end of 2025, including mortgages as well as credit cards, auto loans, and other obligations. It outlines options ranging from working with a credit counselor or debt relief firm to DIY methods such as a balance transfer card and the debt avalanche or snowball strategies that prioritize either lowest interest rates or smallest balances. A key focus is debt relief firms, typically suited to balances over $10,000 without collateral, though some start at $7,500. It says fees often run 15% to 25% of the enrolled debt, and warns that creditors may sue, credit scores may suffer, and forgiven debt over $600 can be taxed as income.