These are the most popular strategies Americans are using to pay off expensive debt
CBS News · Angelica Leicht ·
Borrowers are taking different approaches to tackling debt right now, but some strategies may have big trade-offs.
For many borrowers, paying off debt used to feel relatively straightforward: They would make their monthly payments, put a little extra toward the balances whenever possible and eventually work their way out of the red. But for borrowers carrying thousands of dollars in high-rate debt, that approach has become increasingly difficult to sustain. Right now, even the borrowers who consistently make their payments each month may find that interest charges are eating up any potential progress they would have made, leaving their balances stubbornly high.
And while strategies like cutting back expenses or picking up extra work on the side can help free up money for increased debt payments, those changes don't always provide enough financial room to gain real relief. When a significant portion of your income is already committed to increasingly expensive necessities like housing, groceries and utilities, finding hundreds of extra dollars to put toward credit card or loan balances can be a real challenge.
As a result, many borrowers are reconsidering how they approach debt repayment, looking beyond traditional budgeting methods for ways to reduce their balances and regain control of their finances. Some are making relatively simple adjustments, while others are exploring more substantial financial moves. But which strategies are they turning to most often?
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