Whether you acquired debt from credit cards, a car, student loans or a mortgage, you’re likely to have borrowed money at one point in your life. These debts can eventually reach a point where you’re overwhelmed at the thought of paying them back. According to Nerd Wallet, in 2020 the average American household owed over $7,000 in credit card debt and over $56,000 in student loan debt. Managing your debt effectively will allow you to pay down the money you owe, without gaining more interest. There are some common methods for paying off your debts like debt snowball and debt avalanche.