# Managing Debt

Working toward a debt-free future? Find out strategies for managing and getting out of debt.

## FAQs

### What is debt?
Debt is money borrowed that must be repaid, usually with interest. Common types of debt include credit cards, personal loans, and student loans.

### What is the best way to pay off debt?
The best way to pay off debt is to use a strategy like the [debt snowball and debt avalanche](/content/blog/debt-snowball-vs-avalanche-which-is-right-for-you/index.html) method. Focus on consistent payments while minimizing interest costs. Creating a budget can accelerate debt repayment.

### How can I pay off credit card debt?
You can [pay off credit card debt](/content/blog/how-to-pay-your-credit-card-101/index.html) faster by paying more than the minimum and focusing on high-interest balances. Budgeting and using payoff strategies, such as the avalanche or snowball method, can help.

### How do I calculate debt-to-income ratio?
To calculate your debt-to-income ratio, divide your total monthly debt payments by your gross monthly income. Multiply the result by 100 to get a percentage. Lenders use this ratio to assess borrowing risk.

### What is debt consolidation?
Debt consolidation combines multiple debts into a single loan or payment, often with a lower interest rate. It can simplify repayment and reduce monthly costs. However, it may extend your repayment timeline.