659 Financial tips and laws for today and tomorrow

Here are the best tips to reduce costly high-interest debt early in the new year.

Tip 1: List all debts and rank by interest rate

Write down balances, APRs and minimum payments to clearly see which debts are costing you the most.

Tip 2: Commit to a payoff method

Use the avalanche method or the snowball method to pay off your debt, and stick to it consistently.

Tip 3: Redirect any New Year cash inflows

Redirect tax refunds, bonuses or any leftover holiday cash directly to high-interest balances first.

Tip 4: Request a lower interest rate

Consider asking your creditor for temporary or permanent APR reductions, especially if you have a good payment history.

Tip 5: Stop adding new debt

Pause any discretionary spending and avoid using credit cards to keep your balance from rising.

Tip 6: Track payoff progress monthly

Use a simple tracker or app to monitor balances; this will help you visibly see your progress.