One of the most common New Year’s resolutions for Americans is related to their finances in some way – and more specifically, taking control of them. Some people resolve to track their spending more so they’re more aware of where their money is going. Others vow to use cash rather than credit cards. Still others promise themselves they’ll put some money in savings every month.

For those facing a significant amount of debt, as many people are, their New Year’s resolution is often not just to stop accumulating debt but to pay off the debt they have. Typically, the goal is to pay down your debt as quickly as possible to avoid paying any more interest than necessary. Of course, different credit cards, lines of credit and loans have different interest rates, so that needs to be a consideration. Here are a few strategies to consider.

Increase your payments

If you only pay the minimum due, even if you pay it on time, you may never pay off the debt. If you can’t pay the full balance, at least pay more than the minimum. Remember that you can typically make more than one payment a month. 

These extra amounts and payments, which go towards the principal, add up quickly. If you’re also minimizing how much you charge to a card, the total amount you owe will drop noticeably.

Snowball or avalanche?

Two key strategies for paying down debts focus on tackling them in different orders. One is the “avalanche” method. It involves paying off the debt with the highest interest rate first. After that is paid off, focus on the debt with the next highest rate and so on. This can help minimize the overall amount of money you’re paying in interest.

The “snowball” method involves paying off the debt with the smallest balance first and working your way up to the one with the largest balance. Some people do better with this method because they can see results more quickly as debts are paid off (again, assuming that further debt isn’t accumulating on that card or other debt instrument).

If you’ve got overwhelming debt, perhaps including medical debt or a mortgage in addition to credit card debt, it may be possible to work with the creditor to negotiate or refinance the debt. It may also be worthwhile to consider bankruptcy as a way to take control of your financial health and make a fresh start. Having experienced legal guidance can help you determine what is best for your unique situation.