The missing piece in every debt payoff plan

Americans collectively owe trillions of dollars across mortgages, credit cards, and student loans. While national debt statistics can feel overwhelming, they don’t determine your financial future. With a clear plan and consistent steps, you can take control of your debt and make meaningful progress toward your goals. 

Let’s look at the three most common debt categories and a simple way to establish your own payoff strategy.

Mortgage Debt: The Largest Financial Commitment
Mortgage debt remains America’s biggest debt category by a wide margin, totaling more than $12 trillion nationwide and accounting for most household debt balances*. For many households, a mortgage is a tool that helps build long-term wealth through homeownership, but it can also be the largest monthly financial obligation.
Pro Tip: Occasionally, make extra principal payments to reduce the interest owed over the life of the loan. Or consider refinancing your loan for a lower interest rate.

Credit Card Debt: The Most Expensive Debt
Credit card debt has climbed above $1 trillion nationally, driven by higher costs and rising interest rates*. Unlike a mortgage, credit card debt often carries double-digit interest rates,making it one of the most expensive forms of borrowing. The danger isn’t usually thebalance itself; it’s how long the balance stays around.
Pro Tip: Leverage strategies like balance transfers and debt consolidation to make headway on paying off your credit card balance.

Student Loan Debt: The Long-Term Balancing Act
Student loan debt continues to impact millions of borrowers, exceeding $1.7 trillion nationwide*. While education can increase lifetime earning potential, student loans candelay other financial goals such as homeownership, retirement savings, and emergency funds.
Pro Tip: Explore refinancing opportunities that could lower your interest rate, reduce the overall cost of borrowing, and help you reach your debt-free goal sooner.

Your Three-Step Debt Payoff Evaluation
Numbers don’t change behavior. Plans do. Use this simple framework to evaluate yourdebt payoff strategy and set a debt-free date.

Step 1: Calculate 
For each debt, write down: 
• Current balance
• Interest rate 
• Minimum payment 
• Total monthly payment 

Combine all your balances to arrive at your total debt amount.

Step 2: Plan
Choose your payoff approach:
• Debt Avalanche Pay extra toward the debt with the highest interest rate first while maintaining minimum payments on everything else. Best For: Saving the most money on interest.

• Debt Snowball Pay extra toward the smallest balance first while maintaining minimum payments on other debts. Best For: Building motivation and momentum.

Whichever strategy you choose, consistency matters more than perfection. 

Step 3: Set a Debt-Free Date
This is the step many people skip. Decide when you want your debt to be gone and create a realistic deadline. For example:

• Credit cards paid off by December 2027 
• Student loans eliminated by June 2030 
• Mortgage paid off 5 years early

Having a target date transforms debt repayment from a monthly obligation into a measurable goal. Write it down, track it quarterly, and celebrate progress. The missing piece in every debt payoff plan? The debt-free date. Create one today and take the first step toward a debt-free life.

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About LMY: Life. Money. You.® (LMY) is the Credit Union's holistic financial well‑being program, designed to help people achieve financial success through digital tools, practical resources, and personalized coaching. More than a program, Life. Money. You.® is a partnership-empowering individuals to build confidence, clarity, and lasting financial freedom.