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Debt Consolidation

How High Earners Can Eliminate Over $100,000 of High-Interest Debt

Written by Lauren Hamer, CFEI®
Senior Content Writer
December 23, 2025 | 8 min read
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Even high earners can find themselves facing six-figure debt. Between rising everyday expenses and high credit card APRs, it’s easy for balances to climb faster than planned. But with a debt consolidation loan for six-figure debt, you can replace multiple high-interest payments with one predictable monthly amount—simplifying your finances and saving thousands in interest along the way.

If you have $100,000 or more in debt, here’s how to pay off debt responsibly.

1. Assess your complete financial situation

Before you decide whether high-income debt consolidation makes sense, take stock of your full financial situation. Begin with a comprehensive and honest inventory of every balance, rate, and payment amount. This baseline will help reveal where your money is going and where consolidation could create immediate savings.

High-interest credit card debt is often the most expensive—and for most people, it should be addressed first. Paying 24% interest means nearly a quarter of every payment goes toward finance charges instead of your principal.

Use a simple categorization to identify priority debts:

 

Debt type

Balance range

Typical APR

Priority level

Credit cards

$5,000–$50,000

18%–29%

High

Personal loans

$10,000–$100,000

11%–21%

Medium

Home equity lines

$25,000–$200,000

8%–12%

Low-medium

Student loans

$20,000–$150,000

3%–17%

Low

 

Next, calculate your debt-to-income (DTI) ratio, the share of your monthly income that goes toward debt. Lenders generally prefer DTI ratios below 36%, although high earners may qualify above that threshold with strong credit and verifiable cash flow.

2. Create a realistic budget that supports your lifestyle

Budgeting is about being intentional with your spending to fund priorities, rather than cutting everything. Break your expenses into three categories:

  • Essentials: Housing, groceries, insurance, utilities.
  • Discretionary: Dining, travel, hobbies
  • Luxury: Premium memberships, high-end purchases

 

Once you see the breakdown, you can reallocate without sacrifice. Even trimming 5% to 10% from discretionary spending can free up hundreds or thousands per month for debt repayment.

Set clear, measurable goals. For instance, dedicate 20% of gross monthly income to paying down debt, and automate transfers to eliminate decision fatigue. Automation helps enforce discipline and prevents missed payments.

3. Focus on debts that cost you the most

Focus resources where you get the biggest return. Rank debts by a chosen criterion—usually interest rate or balance—and decide how you want to prioritize debt.

Compare core repayment strategies:

 

Strategy

Focus

Best for

Time to payoff

Total interest

Debt avalanche

Highest interest rate first

Minimizing total cost

Longer initial phase

Lowest overall

Debt snowball

Smallest balance first

Building momentum

Quick early wins

Higher overall

Hybrid approach

Mix of both strategies

Balanced motivation

Moderate timeline

Moderate cost

 

Use the debt avalanche method to minimize interest

The debt avalanche approach is a popular strategy for those who want to pay off high-rate debt efficiently: apply extra payments to the top-priority balance while maintaining minimum payments on others. This accelerates paydown and minimizes total interest.

  1. List debts by interest rate, high to low
  2. Make minimum payments on all accounts
  3. Apply extra funds to the highest-rate debt until it’s paid off
  4. Repeat down the list

 

For example, if you have $5,000 to allocate monthly toward minimum payments of $3,200, direct the extra $1,800 to the account with the steepest APR. This approach saves the most interest and shortens your timeline dramatically.

 

FYI: Paying off high-rate credit card debt often yields a higher guaranteed return than many investments, making the avalanche especially effective for high earners with the cash flow to effectively combat debt.

 

Consider the debt snowball method for motivation

If seeing quick progress motivates you, start small. The snowball method pays the smallest balances first to build momentum:

  1. Order debts from the smallest to the largest balance
  2. Target extra funds to the smallest balance
  3. Maintain minimums on all other accounts
  4. Roll payments forward as debts are cleared

 

This behavioral boost can be powerful, especially if you thrive on visible results, because it delivers quick wins and positive reinforcement, which can help sustain long-term commitment.

4. Simplify your payments with debt consolidation 

If juggling multiple accounts feels overwhelming, smart debt consolidation strategies can help streamline everything into one predictable payment—often at a lower rate.

A typical consolidation outcome:

 

Before consolidation

After consolidation

Multiple payments due at different times

One monthly payment

Average APR: about 22% (for credit cards)

Average APR: about 11% to 15% (for prime credit borrowers)

Typically higher; variable

Typically lower; fixed

Payoff timeline: 10+ years; varies based on debt levels

Payoff timeline: 2 to 10 years

No defined payoff date

Clear debt-free timeline

 

Benefits of personal loans for debt consolidation

A personal loan for debt consolidation offers fixed rates, defined terms, and the peace of mind that comes from knowing exactly when you’ll be debt-free. Unlike revolving credit, installment loans prevent balance creep and promote real progress.

For qualified borrowers, personal loan rates are often 50% lower than typical credit cards, and repayment terms can extend up to seven—or even ten—years. That translates to lower monthly payments, predictable budgeting, and less stress.

However, only a few lenders offer large unsecured amounts above $100,000. And the lenders that do offer them tend to have strict personal loan eligibility requirements. With a BHG Financial personal loan, prime-credit borrowers can tackle six-figure balances with one efficient and premium solution.

 

FYI: BHG Financial offers tailored high-limit personal loans for debt consolidation up to $250,0001 and repayment terms up to 10 years1,2—some of the most flexible loan terms in the industry.

 

When debt consolidation makes sense for high earners

Consolidation isn’t right for everyone, but it’s ideal if you:

  • Hold multiple debts with average rates above 15%
  • Have strong credit and verifiable income to access competitive terms
  • Have multiple payments and variable-rate debt that complicates cash flow
  • Can commit to disciplined spending post-consolidation

 

Remember, consolidation is not a cure for overspending. That said, even in a high-rate economy, a structured personal loan replaces chaos with predictability, freeing up mental and financial bandwidth for what matters most.

5. Increase income to accelerate debt payoff 

To allocate more money toward your debt payments, monetize your existing skills and networks that can generate extra cash without overwhelming your schedule.

Then, direct all additional after-tax income to debt repayment to maximize the effect. For example, applying an extra $1,000 per month to high-interest balances can reduce repayment timelines by years and save a substantial amount of interest.

Examples of practical income-optimization tactics include:

  • Professional consulting or contract work in your field
  • Packaging and selling specialized knowledge or training
  • Teaching, mentoring, or paid speaking
  • Maximizing reimbursement and tax-advantaged business deductions
  • Negotiating raises, performance bonuses, or fees when warranted

 

As an added bonus, these efforts to increase your income also help strengthen your financial profile and improve your debt-to-income ratio, which in turn, influences your future borrowing potential.

6. Protect your savings while paying down debt 

Never drain your emergency fund to pay off balances faster. A well-cushioned savings account protects you from life’s surprises and prevents the need to re-borrow.

Aim to save consistently—typically 2% to 10% of your income monthly—to build a buffer while repaying debt. Keep those funds liquid in a high-yield savings or short-term investment account to earn some return while remaining accessible. It’s a good rule of thumb to have three to six months’ salary saved for emergencies.

This dual approach—steady repayment and consistent saving—will help create true financial stability.

7. Monitor progress and adjust your plan regularly

Treat your debt payoff like a performance plan. Review your progress monthly or quarterly to maintain momentum, and adjust as career, market, or life events change your situation.

Key metrics to monitor:

  • Debt-to-income ratio improvements
  • Total interest saved
  • Time shaved off your payoff timeline
  • Credit score increases
  • Net worth growth

 

Budgeting apps, spreadsheets, and online loan management calculators can simplify tracking. Celebrate milestones as you go—each balance closed is one step closer to complete financial confidence.

BHG Financial: Your partner in smart debt repayment

High earners don’t need to feel trapped by debt. With a debt consolidation loan for six-figure debt, you can simplify repayment, save on interest, and regain the sense of control you’ve earned.

Commit to consistency and choose a partner like BHG Financial that moves at your pace. Estimate your personalized rate in seconds with no impact on your credit score3—and take the first step toward financial peace.

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Just a few easy steps to get prequalified!

Paying down six-figure debt FAQs

 

What are the most effective strategies for paying off large debts as a high earner?

Combine the avalanche method to minimize interest with a realistic budget that preserves key lifestyle choices. A smart approach, such as debt consolidation, can be more effective in the long term, especially if you have significant high-rate debts with APRs over 15%.

 

Can debt consolidation help me reduce monthly payments without lowering my lifestyle?

Yes. Consolidation can lower payments and interest by replacing multiple high-rate debts with a single lower-rate loan, but it requires disciplined post-consolidation spending to avoid incurring new debt.

 

How should I prioritize which debts to pay off first?

Prioritize the highest-interest debts to reduce your total cost, known as the debt avalanche method, or choose the smallest balances first if you need early wins; many high earners benefit most from the avalanche method due to their higher payment capacity.

 

Is it safe to use investments or home equity to pay off debt?

Using investments or home equity can reduce the amount of interest you pay on your debts over time, but it also increases risk—liquidating investments sacrifices future growth and borrowing against home equity risks losing your home.

 

How can I avoid accumulating new debt while paying off existing balances?

Stick to a realistic budget, monitor spending, and automate payments to ensure responsible repayment. Maintain an emergency fund and set clear goals to prioritize debt repayment over discretionary spending.

Not all solutions, loan amounts, rates or terms are available in all states.

1 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.

2 Personal Loan Repayment Example: A $59,755 personal loan with a 7-year term and an APR of 17.2% would require 84 monthly payments of $1,228.

3  There is no impact on your credit for applying. For personal loans, a complete credit history, which will appear as an inquiry on your credit report, will be performed upon acceptance and funding of the loan and may impact your credit.

Consumer loans funded by Pinnacle Bank, a Tennessee bank, or County Bank. Equal Housing Lenders. 

For California Residents: BHG Financial loans made or arranged pursuant to California Financing Law license - Number 603G493.

 

 

 

If you’re feeling weighed down by credit card debt, you’re not alone. High interest rates can feel like an uphill battle, making it easy to fall behind and tough to catch up. 

Understanding how to pay off credit card debt is the first step toward taking control of your debt and reclaiming your financial well-being. Here are a few practical strategies to eliminate credit card debt.

 

Key considerations

  • If you have a significant amount of high-interest debt and a good credit score, a debt consolidation loan can be a viable option for paying off credit card debt. For smaller debts, a balance transfer card could help you tackle debt faster.
  • If not consolidating or using a balance transfer card, set a goal and a budget for repayment; targeting one debt at a time using the snowball or avalanche method can help reduce your balances methodically.
  • Gradually exceed monthly minimum payments whenever possible to decrease your total interest over time. Even small extra payments can make a big difference in your credit card debt over the long term.

 

Why is credit card debt hard to pay off?

U.S. credit card balances have surpassed $1.21 trillion, according to the Federal Reserve, driven partially by high APRs.

Credit card debt is difficult to overcome. Even if you don’t make additional purchases, the interest compounds. Only paying the minimum each month means you will carry the debt from month to month, increasing your debt as you accumulate interest charges.

For example, if you’ve amassed $50,000 in credit card debt on a card with a 23% APR, you could pay up to $11,500 per year in interest. Without a plan in place to address the debt proactively, it can become a significant burden. 

To start, pay as much as you can toward the debt. Some common ways to do this effectively and consistently include using the debt snowball or debt avalanche method. 

 

What is the debt snowball method?

If you have balances on multiple cards, one of the best strategies to eliminate credit card debt is the snowball method. With the debt snowball method, you pay off the card with the smallest balance first before moving on to the next largest one.

This method is a good choice if you can’t afford to make large monthly payments but want to proactively chip away at your debt. Once you pay off a card, you'll redirect the funds you were using for that payment to your next card balance. You'll continue to do this until you’ve tackled each debt.

Here’s how it looks in action, using the following credit card balances as an example:
 

  • Credit card 1: A $5,500 balance and an APR of 16%
  • Credit card 2: A $2,000 balance and an APR of 20%
  • Credit card 3: A $10,000 balance and an APR of 23%

 

Using the snowball method, you’d focus on the second card on this list first because it has the lowest balance ($2,000). Once cleared, you’d move on to the next highest card balance ($5,500) before addressing the third card with a $10,000 balance. 

Remember to make minimum payments on all other cards in the meantime; missing any minimum payment can hurt your credit score.

 

What is the debt avalanche method?

Attacking debt using the debt avalanche method involves paying off the account with the highest interest rate first, regardless of the balance. It can take a while to make progress on —especially if the balance on that card is excessive—but you’ll save money on interest in the long run. 

The avalanche method may be a better strategy for you if you can confidently afford a bigger payment and want to pay less in interest while you work to become debt-free. 

Here’s how debt avalanche looks in action, using the same credit card balances from above as an example:
 

  • Credit card 1: A $5,500 balance and an APR of 16%
  • Credit card 2: A $2,000 balance and an APR of 20%
  • Credit card 3: A $10,000 balance and an APR of 23%

 

Using the avalanche method, you’d tackle the third card first because it has the highest APR (23%). You’d focus on the second card next—APR of 20%—even though it has a lower balance, before moving on to the first card with the lowest APR. 

Again, it’s important to focus on making every payment on time to protect your credit score and avoid tacking on additional late fees. It can take a while to knock out the first debt, so patience and consistency is key.

 

How can debt consolidation help? 

Consolidating personal credit card debt FAQs

Consolidating personal credit card debt can simplify your finances by combining multiple debts into a single monthly payment with more manageable interest rates. In the long run, this can save you from spending more money than you anticipated or previously agreed to on in-terest payments in the future.

Personal debt consolidation can impact your credit score differently depending on the method chosen. For example, applying for a new loan or credit card for consolidation may result in a temporary dip in your credit score due to inquiries, changes in credit utilization, and your his-tory using credit-based financial products. However, making timely payments on the consoli-dated debt can positively affect your credit score by demonstrating responsible financial man-agement.**

Yes, personal debt consolidation can be applied to various types of debt, including personal loans, medical bills, and student loans, in addition to credit card debt. Consolidating multiple debts into a single payment can streamline your repayment process and make it easier to man-age your finances overall.

With highly specialized financing options for accomplished professionals, BHG Financial offers personal loans up to $200K1 to use as you need them. With repayment terms that last up to 10 years,1,2 you can fully bring your financial plan to action by consolidating your personal debts into a simple and affordable monthly payment to help you achieve financial peace of mind sooner rather than later.

Our payment estimator can help you see your personalized estimate quickly, and our dedicated concierge service team can serve your needs every step of the way.

 

Debt consolidation involves combining multiple credit card debts into one new account or loan and using it to pay off your existing debts. In many cases, consolidation can save you money because the new product may come with a lower interest rate than the ones attached to your cards. Consolidating debt also simplifies the repayment process because you only need to manage one monthly payment.

Some of the most effective credit card consolidation strategies include using a debt consolidation loan or a balance transfer credit card. The best way to pay off credit card debt will depend on the amount of debt you have, your credit history, and your income level.

If you have a significant amount of high-interest debt and a respectable credit score, a lower-rate personal loan for debt consolidation can be a viable option. Debt consolidation loans, like the ones offered by BHG Financial, have flexible repayment terms1 that help keep your monthly payments low.

 

Do balance transfers help pay off debt faster?

Transferring your balance from one credit card to another can help you pay your debt faster, as long as the new card comes with a lower rate. If you transfer your balances to a new card with a lower APR, you can allocate a greater portion of your future payments to paying down the principal instead of the interest.

That said, there are a few things to know about the timing of balance transfer credit cards:

  • You can apply for a balance transfer card in a matter of minutes, but the actual transfer can take anywhere from a few days to several weeks, depending on the credit card company. During that time, you’ll still have to make any payments you owe to your original card company.
  • Make sure you understand how long the introductory rate lasts, whether there’s a transfer fee, and what the regular rate will be after the promotional period. Introductory rates typically run for a period of six to 18 months, and if you can’t pay off your balance in full, the new rate may be higher than the rate on your old card. 

If you worry it may take longer than the intro period to pay off your debt, consider transferring your balance to a debt consolidation loan. BHG offers fixed, affordable payments with terms up to 10 years.1,2 Plus, dedicated loan specialists provide a concierge loan experience, guiding you through the loan process. 

 

 

Balance transfer vs personal loan chart


Source: Bankrate, Investopedia - Accessed on 3/14/25
1 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.

 

How to pay off credit card debt FAQ

 

Should I pay off my credit card debt or save first?

It usually makes sense to pay off your debts before saving money, especially if you have high-interest debt. This is because the high interest rates on your accounts will often cost more than the money you can save. For this reason, any money you can afford to save is better allocated to paying off your high-interest debt so that it doesn’t continue to compound. 

 

How can negotiating with creditors reduce my debt?

If card issuers are willing to consider negotiating your credit card debt, you may be able to set up a payment plan, pay off the cards for less than what you owe, or agree to a forbearance. However, there are definite drawbacks to negotiation, as these solutions negatively impact your credit score.

 

Can I pay off credit card debt without hurting my credit score?

Absolutely! Any moves you make to pay your monthly balances on time can help build a solid payment history and, in turn, improve your credit score. Plus, reducing your credit card balances will lower your credit utilization ratio.

 

Are debt relief programs worth it?

Debt relief (debt settlement) programs offered by for-profit companies should be viewed as a last resort, and only after you’ve exhausted options for consolidation. Debt relief companies can fast-track getting out of debt, but they often charge high upfront fees, and the process could hurt your credit score. Watch for scams and make sure you understand the potential fees before handing over your finances to a debt relief company.

 

What if I can't afford minimum payments?

Many creditors are willing to work with you if you cannot afford to pay the monthly minimum payment. Call the company as soon as possible to see what you can work out. If getting a debt consolidation loan isn’t an option for securing a lower minimum payment, you can contact a credit counseling agency, which will help you organize a debt management plan to pay down your debts. Debt relief programs could be considered as a last resort, as they come with drawbacks and can charge exorbitant upfront fees.

 

How BHG can help you pay off debt faster

At BHG Financial, we believe financing should fit seamlessly into your life and goals. That’s why we offer personal loans tailored to your needs, with amounts up to $200,0001 and flexible terms of up to 10 years.1,2 Consolidate your high-interest debt with a BHG loan designed to help you move forward confidently. 
 
Plus, you’ll enjoy dedicated, U.S.-based concierge service that works around your schedule—because your time is valuable. Ready to see what’s possible? Use our quick and easy payment estimator to get your personalized loan estimate in just seconds.