How to pay off credit card debt in 2024

Here’s how to pay off your credit card debt this year

Are you looking for the fastest way to pay off credit card debt while saving money and improving your credit score? While the Avalanche and Snowball methods have helped many, the Debt Lasso method is more effective. In this article, we examine how this method helped us pay off over $51,000 in credit card debt in two and a half years and how it helped our clients pay off over $1,000,000 in credit card debt.

Analyze credit card debt

The Impact of High Interest Rates

The Debt Lasso Method was born out of our realization that high interest rates are a major obstacle to getting out of debt quickly. With our annual interest payments reaching $10,000, we developed a plan to reduce or eliminate this financial burden.

That could be you.

I now believe that my husband and I – will have a comfortable retirement in Florida, and we don’t have to wait until I’m 75. –Fred N

We are better prepared for emergencies than ever before. I don’t like paying this bill (sump pump repair) but we have the money for it now. We are less stressed. –Karen D

My husband and I traveled across the southern United States for four months. We have never had so much freedom. We wouldn’t have been able to do this if you hadn’t helped us pay off all our debts. – Claudia P

The birth of the debt lasso method

Through careful calculations and analysis, the Debt Lasso Method was developed to reduce the time required to pay off debt compared to traditional methods such as Avalanche and Snowball. The method aimed to pay off $51,000 of our credit card debt within three years and ultimately exceeded our expectations by accomplishing this in just two and a half years.

Implementation of the debt lasso method

Overcoming high interest rates

To implement the debt lasso method, we contacted their credit card companies to negotiate lower interest rates. Additionally, we strategically utilized special offers on credit cards with 0% interest rates and transferred balances to minimize interest costs.

Refinancing strategies

The method goes beyond credit cards to include auto loan and mortgage refinancing strategies. By refinancing at lower interest rates without extending the loan term, individuals can speed up debt payoff, save money, and improve their credit score.

But with the debt lasso method, you don’t just refinance your debt; otherwise everyone would be able to pay off their debts. All five steps of the debt lasso method are listed below.

Listen to what we told Rachael Ray about the debt lasso method:

How can I pay off my credit card without any money?

So how can you pay off your credit card debt with no money? You’ve probably noticed, as we have, that the majority of the money you transfer to your credit card each month goes toward your credit card interest, not the loan amount you’re using – your principal.

Credit card interest rates increase on their own, and this “reverse saving and investing” makes it harder to get out of debt. Because of this, you can make one payment at a time, month after month, year after year, without adding to your debt.

This is why most people think they need to make, raise, or steal more money to pay off their credit card debt faster, when in reality they need to transfer 100% of the money they transfer to their credit card, including any extra money, that they have for their capital (not their credit card interest).

This means you can pay off your credit card debt with no more money than you already transfer to them. This is why using the debt lasso method to pay off your credit card debt makes a lot of sense over any other method you find on the internet.

Refinancing Your Debt and the Debt Lasso Method

The debt lasso method lowers your interest rates as low as possible, ideally 0%, to the fewest locations, ideally 1%.

It is possible to negotiate a lower interest rate on existing debt. Still, Trump and Pelosi jumping onto the White House lawn holding hands are more likely than a bank agreeing to a 0% interest rate – that’s not going to happen.

That’s why the second and most productive step with the credit card debt lasso is to take advantage of credit card promotions with 0% interest rates.

So the first thing we did was contact all of our credit card companies and ask them to lower our interest rates. Some agreed, even if it took some convincing.

Be kind. Ask the representative for their name and use it up to three times. Ask them how they’re doing and share your story (don’t just ask for a free gift). What helped for us was that our payment history and credit rating were good. The only thing holding us up was our debt-to-income ratio. The debt lasso works best with better credit.

Next, we used credit cards with 0% interest rates and no annual fee offers. We will calculate the cost of transferring the balance if we find such offers. This meant reading a lot of small print and understanding what we were reading.

Most 0% interest rate credit card promotions last six to 18 months. The longer the better. Longer terms reduce net costs.

Then we rushed to pay off as much of our credit card debt as quickly as possible. When a card was paid off, we put more money toward our remaining debt and repeated this until we were debt-free.

Refinancing Your Car Loan and the Debt Lasso Method

There are many reasons to refinance your car loan. The biggest danger is when today’s interest rates are lower than your current interest rate. Another reason is that your credit score has improved since you took out your last loan.

As with the credit card debts mentioned above, refinance your car loan for a lower interest rate. In this case, do not extend the time to pay off your debts. This will only increase your next costs. Keep the duration short.

You then transfer 100% of all savings and additional funds to your car loan. This will also help you pay off your car faster, save money in the long run, and improve your credit score.

Refinancing Your Mortgage and the Debt Lasso Method

Under certain conditions, refinancing your mortgage makes sense. All too often, people refinance mortgage debt and lower their monthly payments, but then end up paying more because of the longer terms or the number of years they have to pay off their mortgage. Likewise, refinance fees can make refinancing your mortgage debt unaffordable.

Only refinance your mortgage debt if the refinance fees make sense and you can meet your term of between 10 and 15 years.

When you do a cash-out refinance to consolidate debt, keep your property’s loan value below 80%. Without at least 20% equity in your home, you will pay private mortgage insurance. This costs 0.05% to 1.00% of your loan.

A $300,000 mortgage will cost $1,500 to $3,000 more in monthly payments. It’s not worth it.

Like the debt lasso method of paying off credit card debt, paying off mortgage debt can help you pay off your mortgage faster, save money in the long run, and improve your credit score. You’ll get 10x more if you invest 100% of all savings from your refinance and any additional funds toward paying off your mortgage.

Is the debt lasso just debt consolidation or credit card debt refinancing?

5 steps of the debt lasso method

1. Commit:
   1. Make a commitment to stop using credit cards.
   2. Commit to paying more than the minimum monthly payment.
2. Trim:
   1. Immediately pay off or reduce cards that can be paid off within one to two months.
3. lasso:
   1. Consolidate debt in as few locations as possible with the lowest interest rates.
4. Automate:
   1. Automate credit card payments, focusing on paying more than the minimum amount on the card with the highest interest rate.
5. monitor:
   1. Ensure on-time payments and adjust payments once your credit cards are paid off.

The fine print(s) of the debt lasso method

Read the fine print of each offer and understand the potential consequences for missed payments and post-promotion interest rates. Regularly opening and closing loans can impact credit scores, highlighting the importance of maintaining open accounts with long credit histories.

Should I keep my credit cards while paying off my credit card debt?

Strategically managing your credit cards is crucial if you want to pay off credit card debt. The decision to keep or close certain cards depends on various factors, and understanding these nuances can have a significant impact on your financial development.

An important principle is to keep your oldest non-retail credit card. This card has the longest credit history and accounts for 15% of your total credit score. Maintaining this long credit history can have a positive impact on your credit score.

Conversely, personal credit cards often come with higher costs and limited benefits. In many cases, closing these retail accounts can be a sensible financial move.

As for your other credit cards, whether you keep them open or close them depends on your circumstances. Some people choose to keep all of their cards, while others choose to close certain accounts to avoid the temptation to spend more.

Despite concerns about increased credit utilization due to card closures, these impacts can be mitigated by using effective debt payoff strategies such as the debt lasso method. By paying off your credit card debt quickly, any temporary negative impact on your credit utilization will be negligible within a short period of time.

Keeping or closing credit cards depends on your individual financial goals and habits. By understanding the impact on your credit score and incorporating smart debt payoff methods, you can achieve your goal of paying off credit card debt efficiently.

How do I choose which credit card to pay off first?

According to the New York Federal Reserve, Americans bore the burden of a staggering $1.08 trillion in credit card fees in 2023, underscoring the ever-present challenge of credit card debt. This financial burden not only prevents people from achieving their desires, but also contributes to increased anxiety and exacerbates psychological concerns.

Now you’ve taken a commendable step toward financial freedom by committing to paying off your credit cards. The next hurdle? Strategically navigate multiple cards with different balances and consistently high interest rates.

Choosing the order to eliminate your credit card balance can be daunting, especially when it comes to prioritizing between different cards. Some people even have trouble managing more than 20 cards, adding even more complexity.

For most people, the real dilemma is not about paying off credit cards, but rather choosing the most effective method and determining the optimal order for repayment. It’s about sticking with a strategy until every credit card balance shows $0.

Choose the debt lasso method – a choice that reflects your financial acumen. Despite consolidating your credit card debt to minimize locations and secure the lowest interest rates, the challenge remains as multiple cards and different interest rates continue to be in play.

So how do you navigate this terrain efficiently? What’s critical is understanding the intricacies of the debt lasso method and implementing a tailored plan for your specific credit card landscape. This way, you’re not just paying off your credit card debt; Take back control of your financial well-being one strategic step at a time.

Which credit card do you pay off first?

Paying off credit card debt efficiently requires a strategic approach tailored to your financial situation. Here is a comprehensive plan to guide you through the process and achieve debt freedom:

1. Immediate success with the snowball method:

Start by getting quick victories. If you can comfortably pay off each credit card in 1-2 payments, use the snowball method. It’s all about tackling smaller problems first, which provides a psychological boost when you see noticeable progress.

2. Optimize with the Debt Lasso Method:

If you have high credit, use the debt lasso method. Maintain a consistent minimum total payment while allocating additional funds to targeted cards. This approach helps reduce debt efficiently without harming your credit score.

For those with lower credit scores, there is no need to worry. The debt lasso method remains a powerful tool for improving your credit score while paying off debts. Its structured approach offers a path to financial recovery.

3. Strategic Debt Elimination Using the Avalanche Method:

For a comprehensive debt payoff strategy, consider the Avalanche method. Start by making minimum payments on all credit cards. Redirect excess funds and savings to the card with the highest interest rate. Once fully repaid, cascade the minimum payment and additional balance onto the next high-interest card.

Continue this strategic snowball effect until every card is debt-free, first systematically eliminating higher interest obligations.

By incorporating these best practices into your debt payoff strategy, you can make informed decisions based on your individual financial profile. Whether you choose quick wins, credit optimization or a strategic interest rate target, the path to debt freedom becomes clearer step by step.

How do I budget while paying off credit card debt?

Achieving the goal of paying off credit card debt is closely linked to effective budgeting. Contrary to popular belief, budgeting and paying off debt are not mutually exclusive; they go hand in hand. A solid budget serves as a compass for your financial journey and provides insight into the origins and destination of your money.

The key is clarity – understanding the inflows and outflows of your finances will help you make informed decisions. The more you understand your financial landscape, the better able you will be to curb unnecessary spending and allocate funds to eliminate credit card debt.

So, with so many budget options, how do you choose the right one?

The truth is: any budget is better than no budget. However, simplicity often wins. Our preference leans towards a simple table created for our use. This straightforward tool proved to be more efficient than many available alternatives, even in the age of advanced apps. Surprisingly, we still rely on this tried-and-tested spreadsheet today, highlighting the timeless power of simplicity.

Essentially, by harmonizing budgeting with your mission to pay off credit card debt, you create a synergistic financial strategy. The clarity that comes from a well-structured budget becomes your ally, allowing you to optimize your spending and allocate more resources to free yourself from credit card obligations.

Basic steps and strategies to start paying off debt

So far we have talked about the quantitative steps to pay off credit card debt quickly, but not the qualitative steps to pay off credit card debt super fast. That is also important.

1. Adopt the mindset of (finally) paying off credit card debt

Indulging in designer clothes, spending extravagant vacations and staying in prime locations accompanied by extensive happy hours – does this lifestyle sound familiar?

Some may call it the “gay lifestyle.” A question once asked in a Facebook group reflects the sentiment: “Why does it seem so expensive to be gay?” If you’ve ever thought about it, you’re not alone.

Striving to keep up with what is seen as the epitome of the “gay lifestyle” left us, two dissatisfied people, feeling like the epitome of the stereotype: looking fabulous but living fabulously broke. Picture this: sharing a two-bedroom apartment with three others in LA while driving Beemers and Audis.

One transformative evening, sitting on the dining room floor of our basement apartment, we declared, “Enough!” The weight of our debt had plunged us into depression and frustration, hiding the reality of the life we ​​wanted behind a facade.

Attempts to improve our financial situation had previously failed. We couldn’t continue living like this; A change was inevitable.

Maybe you long for something different.

Starting a transformation requires a change in mindset. The desire for change is one thing; Believing it is possible is another. But true transformation happens when action follows. You stay in the same financial situation without changing your thought patterns or going into debt again.

So remember this: changing your mindset is the first step into a different reality. Accept the difference between simply wanting change, believing that change is achievable, and actively seeking change. Your financial liberation begins with changing your mindset, breaking out of the cycle of debt, and creating the life you truly want.

2. Have the vision of becoming debt free

For many, a life without debt can seem like an elusive dream – be it the burden of student loans, credit cards or medical bills. However, the constant presence of debt does not have to be a fixed reality.

As we came to grips with our financial reality and found ourselves with a massive $51,000 in credit card debt, we dared to imagine what life could be like without this burden. It was a transformative exercise. Consider this: The $10,000 spent annually on credit card interest payments became the catalyst for our dreams. We wanted to put this amount toward maximizing our IRA accounts and adventuring to Australia and New Zealand.

The joy of daydreaming was palpable. Conversations shifted from the constraints of a credit card-induced hangover to planning real vacations. We even explored the possibility of moving from our basement apartment to a condo.

So what does your debt-free life look like? It’s more than a question; It’s an invitation to imagine a life where financial constraints no longer dictate your decisions. Imagine being able to redirect money once lost to interest toward building a secure future or fulfilling lifelong dreams. You can paint the canvas of a debt-free life – what vivid picture emerges when you imagine financial freedom?

3. Make friends with the Benjis

In the words of Macklemore: “I only got 20 bucks in my pocket, I, I, I’m on the hunt. This is fucking awesome.”

The true joy of managing your finances comes when you know exactly where the heck your money is coming from and where it’s going. It’s liberating to be in control. Establishing this awareness, knowing your current financial position, and envisioning where you want to be will give you the essential roadmap to achieving your financial dreams.

Our path to debt freedom required this roadmap. Otherwise, the allure of Sunday Funday – popping bottles at happy hour and succumbing to Amazon addiction – would continue to be the path of least resistance. After all, Mr. Visa and Ms. Master Card never seem to utter the word “no.”

Let me ask you: What brings you real joy that resonates days and weeks later and surpasses the fleeting happiness that comes from impulsive spending?

We’ve discovered an effective strategy: tracking becomes easier when you choose the tangible – cash. Using this method will keep you accountable and give you a clearer view of your financial landscape. It’s a powerful shift that allows you to prioritize true joy over temporary pleasures and navigate the twists and turns of your financial journey with purpose.

4. Get ready. Get ready. Go!

So where the hell are you financially? If you’ve read this far, you might have an idea. But as we all know, an idea is virtually worthless unless it is backed up by action.

How many times have you come up with a brilliant business idea and watched someone else take the opportunity, implement it, and reap the financial benefits? It’s a scenario that many of us have experienced.

Coming to terms with the reality of your financial situation – assessing how much you currently own of the life you are living and comparing it to what you need for the life you aspire to – is a powerful motivator to Act.

Enough with the idle contemplation; It’s time to do something. The transformation you seek begins with awareness and purposeful steps forward. So seize the moment, take financial steps and translate your desires into tangible results.

5. Have the courage to do it

Remember your last extraordinary first date – not the details, but the dynamics. Who took the step and asked the other person out? It’s not about logistics; it’s about courage. And admit it, post this date, some happiness remained (insert mischievous grin).

Now think about your relationship with money. It’s not a marriage, but taking a simple step toward financial freedom is like asking your wallet to dance. Your future partner, your financial soul mate, will undoubtedly thank you. Because let’s be honest: Nothing is sexier than a person who is in control of their life together, including their finances.

Speaking of romantic partnerships, did you know that couples – regardless of gender – who talk openly about money tend to have more fulfilling experiences in the bedroom? So not only does financial responsibility make you attractive, but it can also contribute to better intimacy.

Meet people who have used the Debt Lass method to pay off credit card debt

Thanks to the debt lasso method, we have now done it Paid off $60,000 in debt since February 2019. – Nathan E

I have paid off over $21,000 in credit card debt even using the debt lasso method while I pay for my wedding and honeymoon. –Fred N

The Debt Free Guys Debt Lasso Method helped me realize that my financial self-care is just as important as other self-care for myself and our community. – Michael C

Thanks to Debt Free Guys, my husband and I started our personal finance journey. With all the tips they provided, we eliminated our credit card debt in less than a year. – Claudia P

It’s easy to keep swiping the card without considering the consequences. With the Debt Free Guys, We found the help we needed to get us back on the right path. – Brandon & Alex B

Kudos to the debt-free folks who saved me $150/month in interest (using their debt lasso method). I look forward to getting rid of consumer debt much faster. . . The total savings is about $2,250. – M. Morris

Since I started using the debt lasso method earlier this year, We paid off $14,000 with credit card debt. – Karen & Dave D

I am Pay off $578 in credit card debt a month. – Jeannette

How Nathan and his husband paid off their credit card debt

Meet Nathan, a dedicated believer in the Debt Lasso Method who embarked on a transformative journey to repair his financial landscape. His first breakthrough was developing a keen awareness of his spending habits and their underlying motivations.

When Nathan’s household income took a hit after his husband joined the military, an unexpected challenge arose: maintaining their previous spending habits of $125,000 in annual income. Nathan’s long-standing practice of generously paying bills for friends, which exacerbated the problem, contributed significantly to his accumulation of debt. This financial burden increased as Nathan, driven by his adventurous spirit, continued to travel extensively despite limited financial resources.

For Nathan, the perception of success was closely tied to his wealth, leading him to take on debt to maintain the outward appearance of wealth. His self-esteem became tied to the illusion of financial prosperity, fueled by the belief that success was essential to maintaining friendships.

The turning point came when Nathan’s husband was transferred to Japan, which significantly reduced her expenses and motivated Nathan to address her financial challenges head on.

Nathan confirms the central role of the Debt Lasso method and highlights the invaluable weekly video calls as the cornerstone of the program. As of this writing, Nathan has successfully eliminated over $21,000 in credit card debt. Impressively, his commitment continued and resulted in the complete elimination of over $60,000 in debt. Nathan and his husband are focused on building a secure retirement, resuming travel, and maintaining their current lifestyle – all achieved through prudent cash management. Nathan’s story illustrates the power of financial resilience and strategic planning in achieving long-term goals.

Fred and Rich had a wedding, a honeymoon, and still paid off $15,000

Enter Fred Norrell, who was once among the 75% of Americans who manage their finances on a whim, as CNBC reports. Fred’s financial journey took a transformative turn when he adopted the Debt Lasso Method, leading him to a debt-free life and paving the way for the early retirement he envisions in sun-drenched Fort Lauderdale.

For Fred, the popular belief that higher income would naturally lead to debt reduction turned out to be a misguided assumption. Although he rose through raises and promotions, his debts and lifestyle increased at the same time. Faced with this confusing reality, Fred turned to the debt lasso method and initiated his financial reform with a profound insight – 12-month spending analysis.

This eye-opening exercise destroyed his prejudices.

Known for his lively personality and generosity, Fred often footed the bill for friends and his husband when they went out. The realization hit him (à la Blanche Devereaux) as he meticulously added up 12 months of cash bills, restaurant bills, café receipts, holiday expenses and the funds invested in his new holiday home. The sum made him wince – a clear admission of unconscious spending habits driven by a desire to keep up with the proverbial “Joneses.”

By the time consciousness dawned, Fred and Rich had already set aside money for their wedding and honeymoon. Undeterred, they enjoyed these moments while paying off a significant amount of $15,000 in credit card debt.

Fred joins the ranks of those who derive enormous benefit from the debt lasso method’s weekly video calls, humorously calling them his “money therapy.” His goals, which he shares with Rich, include saying goodbye to stressful jobs and retiring to his vacation home in Fort Lauderdale. Thanks to the quick guide to eliminating credit card debt using the debt lasso method, you’ll get closer to your dream with each passing day. Fred’s story illustrates the potential for financial liberation and achieving dreams through strategic debt management.

Why the Debt Lasso Method is the Best Method for Paying Off Credit Card Debt for Everyone

Wondering if the debt lasso method is only for gay couples? Think about it again. Meet Jeanette, a single woman living successfully in the bustling heart of New York City who credits the method with helping her pay off her credit card debt.

Just a year ago, Jeanette was in financial ruin. Today, her perspective has completely changed and she exudes confidence in her ability to overcome her financial challenges.

Jeanette’s financial odyssey began with a large credit card debt of $60,000. To ease the burden, she took out a personal loan of $30,000, only to amass double that amount. A scarcity mentality compounded her financial problems as she struggled with guilt over spending beyond her means on her sister’s wedding. As maid of honor, Jeanette felt compelled to throw lavish parties, including the wedding reception, jeopardizing her financial stability due to family obligations.

Now that she has embraced the Debt Lasso Method, Jeanette aims to free herself from debt within four years, fueled by the method’s strategic approach and invaluable weekly video calls. Once her debts are paid off, Jeanette plans to shift her focus to hyper-focused investments in her long-term future, symbolizing a remarkable turnaround in her financial outlook. Her journey highlights the universality of the Debt Lasso Method, which breaks down barriers and provides individuals with a path to financial empowerment, regardless of their relationship status.

Credit card debt knows no age and can still be paid off quickly

Karen and Dave found themselves in a financial bind, struggling with unplanned expenses that forced them to borrow multiple credit cards. Faced with this challenge, they discovered a lifeline – the debt lasso method – a decision that marked their investment in a debt-free future.

Karen, who was juggling full-time and part-time work, was charged a staggering $700 per month, which works out to a whopping $8,400 per year in credit card interest alone. On the other hand, in retirement, Dave had to deal with the complexities of three different loans and debts across five credit cards. In the current interview, Karen’s monthly interest payments had already dropped to $500 and Dave had successfully eliminated two loans and three credit card debts.

What sets Karen and Dave’s story apart is its uniqueness, which stems from their financial difficulties, their age, and the circumstances that led to their accumulation of debt. Much of their financial burden came from altruistic efforts, particularly supporting adult children with disabilities and other relatives. The effects of her generosity and other unconscious spending habits eventually caught up with her.

But thanks to her progress with the debt lasso method, the dream of retirement is no longer a distant dream but a tangible reality. Her vision is to purchase a trailer and embark on a nationwide journey. With the progress made, the realization of this dream is imminent and represents a triumphant turnaround in their financial journey.

Additional methods for paying off debt

While the debt lasso method is the best way to pay off credit card debt for most people, it is not the only option. Every situation is unique. There are tools for everyone.

Depending on your situation, some of the following options may be more helpful than the debt lasso method for paying off your credit card debt.

1. Debt consolidation

The advantage of debt consolidation to pay off credit card debt is that you hopefully transfer all of your debts to one lender – similar to the debt lasso method. Also, like the debt lasso method, you choose the loan with the lowest interest rate.

However, unlike the debt lasso method, you won’t find a loan with a 0% interest rate, no matter how good your credit score is. While processing fees may be comparable to credit card transfer fees, your consolidation company may charge other, less obvious fees.

Regardless, this can speed up your debt freedom journey.

2. Debt settlement

If you can’t afford to pay off your credit card debt but aren’t quite ready to file for bankruptcy, debt settlement may be a solution – although not without consequences.

With debt settlement, you pay off a percentage of your debt – ideally an amount you can afford – and your lender pays off the rest.

Similar to bankruptcy, a settlement appears on your credit report that negatively impacts your credit score. Likewise, in certain situations, you may have to pay income tax on the amount withheld because your state and federal government consider it income.

3. Personal loans

The essence of the debt lasso method is to get credit card offers with a 0% interest rate. This is not always accessible to people. The debt lasso method can still be done with lower, not necessarily zero interest loans.

If there are no 0% interest rate credit card offers currently available to you.

4. Bankruptcy

Filing for bankruptcy is usually the last resort for most people. It’s not the best experience in the world, but it’s not the worst either. There are different types of bankruptcies, including Chapters 7, 11, and 13.

5. Credit counseling

A credit counselor is a certified professional who will help you reduce your high-interest debt. If necessary, you will be enrolled in a debt management program. There is for-profit and non-profit consulting.

For profit-oriented advice you will be charged a fee, which is usually monthly. There are no fees for non-profit advice. In both cases, you will continue to pay your lenders the repayments, including any recurring interest agreed in the negotiations.

This service is great for anyone who needs help, especially with non-revolving debts like mortgages, HELOCs, auto loans, and personal loans.

See what we told CNBC about the debt lasso method:

Conclusion: Achieve financial freedom

In summary, the debt lasso method is an effective strategy for paying off credit card debt quickly, saving money, and improving your credit score. By navigating high interest rates and using strategic refinancing, you can follow the five steps method to achieve financial freedom.

Although there are alternative methods, the success of the debt lasso method in paying off millions of dollars in credit card debt demonstrates its effectiveness in eliminating debt quickly.

More resources for paying off debt: