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

If you have debt you need to pay off, you’re not alone — the average American household carried $154,152 of debt at the end of 2025, according to data from the Federal Reserve Bank of New York. While that figure includes mortgages — which are generally considered a form of good debt — it also comprises credit card balances, auto loans, and other debts.

There are a few options for paying off debt: You could partner with a credit counselor or a debt relief company, or consider a balance transfer credit card. There’s also the debt avalanche or snowball method, which builds momentum by focusing on paying down debts with the lowest interest rate or the lowest balances first.

To figure out which one is the right fit for you, CNBC Select created a flowchart that can point you in the right direction. Plus, we’ll look at what each method entails to help you feel confident in your choice.

Debt relief companies can be a good fit for those with large balances who need help getting their debt under control.

These companies tend to have similar processes: They tell you to stop paying your bills and instead put those funds into a savings account. The debt relief company negotiates with the creditors you owe to reduce your debt and pay them with the funds you’ve saved.

Typically, you need to have over $10,000 in debt that’s not backed by collateral, like a car or mortgage, to qualify. However, some companies work with customers carrying $7,500 or more.

To be sure, there are a few things to know before you start. In exchange for services, you’ll pay a fee equal to between 15% and 25% of the debt balance you enrolled at the beginning of the program. For example, someone who enrolls $10,000 worth of debt could owe up to $2,500 in fees at the end.

There’s also no guarantee that your debts will be reduced — rather, your debts will continue to accrue interest, late fees, and other penalties until they’re settled, so your balance could keep growing, according to the Consumer Financial Protection Bureau. You could also face lawsuits from creditors and it’s likely that your credit score will take a hit, making it harder to get credit in the future.

Finally, any debt more than $600 that’s forgiven or canceled is taxed as income, which could raise your tax bill for the year and bring a surprise the following April.

If you’re interested in working with a debt relief company, there are several that stand out based on affordability, customer service and availability. CNBC Select named Freedom Debt Relief a top pick for its high number of positive customer reviews and its extended hours, including Saturdays and Sundays.

We also like National Debt Relief for its large footprint — available everywhere except Connecticut, Oregon, Vermont, West Virginia and Wisconsin — and for allowing those with as little as $7,500 in unsecured debt to enroll in its services.

You can find a credit counselor in your area — or one that you can meet with virtually — through theNational Foundation for Credit Counseling (NFCC), a network of over 1,500 professional credit counselors.

If you’re buried under interest and want to pay off your debt quickly, a balance transfer card could be a solution. To start, you’d apply for a new credit card with an introductory 0% APR and transfer any balances you have to it. These intro APRs typically last 12 to 18 months, though some cards can be as long as 21 months.

There are a few caveats to be aware of before going this route. First, you’ll need good credit — typically 670 or above — to qualify for many of these cards. Second, make sure you can handle a new line of credit responsibly. Finally, you’ll need to pay off the balance during the introductory 0% APR period, as the interest rate applies after that period ends. In the first quarter of 2026, the average credit card account had an APR of 21%, according to the Federal Reserve. An interest rate that high could quickly grow your balance.

If you’re confident you could pay off your debt before the introductory period ends, CNBC Select can help you pick the right 0% intro APR card.

The Wells Fargo Reflect® Card has one of the longest 0% intro APRs with up to 21 months for qualifying balance transfers, followed by a variable APR of 17.49%, 23.99% or 28.24%. You’ll need to complete any balance transfers within 120 days of opening the account to qualify, and you’ll pay a balance transfer fee of 5% — with a $5 minimum.

The Chase Freedom Unlimited®(see rates and fees) is another strong option, offering a 0% intro APR for 15 months from account opening on purchases and balance transfers — 18.24% to 27.74% variable APR afterward. You’ll pay an intro balance transfer fee of 3% of each transfer (minimum $5) within the first 60 days after opening; then the fee increases to 5% of each transfer (minimum $5).

Both of these methods will require careful planning — you’ll need to make sure you have the funds to pay these debts each month after your minimum payments. A budgeting app like Monarch or Goodbudget can help you track money each month to determine how much you have available to spend.

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