Is Debt Making It Impossible for You to Save for Retirement? 3 Strategies You Can Try.

By Kailey Hagen, CFP – Mar 6, 2026 at 7:00AM ESTKey PointsIt often makes sense to pay off your high-interest debt before saving for retirement.You can use a balance transfer card or debt consolidation loan to do this.Make sure you have a new budget to help you avoid future debts. Saving for retirement is important, but when it's decades away and you've got bills due today, it's understandable if it falls lower on the priority list. You don't need to pay off all your debts before you can tackle retirement savings, but if you have high-interest debt, it's worth getting it out of the way so you have more wiggle room in your budget. The right strategy for you will depend on how much and which type(s) of debt you have. Here are three popular strategies you can use to get your high-interest debt under control. Image source: Getty Images. 1. Snowball or avalanche method The debt snowball and debt avalanche methods are do-it-yourself strategies you can use to pay off multiple debts without taking out new loans. You start by making a list of all your debts, including the creditor name, balance, interest rate, minimum payment, and payment due date. With both strategies, you make minimum payments on each of your debts every month. The snowball method has you put any extra cash toward the debt with the smallest balance first until it's paid off. Then, you move on to the debt with the next-smallest balance, and so on. The avalanche method does the same thing except you focus on the debt with the highest interest rate first. 2. Balance transfer card A balance transfer card can work well if you have expensive credit card debt that you're confident you can pay off in the introductory 0% interest-rate period. You'll pay a one-time fee to do the balance transfer, but then, your balance won't grow for months. This can make it much easier to pay back what you owe. However, once the introductory period ends, any remaining balance will begin to accrue interest at the standard rate. Make sure you're prepared for this if you haven't paid off the entire amount at that point. 3. Debt consolidation loan A debt consolidation loan is a new loan you take out to pay off other debts. It could get you a lower monthly payment and may reduce your overall interest payments. Debt consolidation loans are often personal loans that offer fixed monthly payments. Interest rates vary, depending on your creditworthiness. With all of these strategies, it's crucial that you develop a new budget so you don't find yourself in the same tight spot again. For example, if you take out a debt consolidation loan and charge your credit cards back up, you'll be in a worse financial position than you were before. Once you've cleared some of your debts off your plate, start diverting some of that extra money toward a retirement account. Use your 401(k) first if you have access to a match. If you don't have access to a 401(k), consider opening an IRA instead.Read NextMar 6, 2026 •By Kailey Hagen, CFPWorking and Claiming Social Security Early at the Same Time? A Benefit Cut Could Be in Your Future.Mar 6, 2026 •By Maurie BackmanThink You're Ready to Claim Social Security? 3 Rules to Review FirstMar 5, 2026 •By Maurie BackmanRetiring Without Answering This Question Is a Huge MistakeMar 5, 2026 •By Maurie BackmanThink Medicare Covers Everything? Here's What It Doesn't Pay For.Mar 5, 2026 •By Kailey Hagen, CFP1 Thing About Retirement Savings I Wish I'd Understood SoonerMar 5, 2026 •By Maurie BackmanHaving an Emergency Fund Beats Raiding Your Retirement Accounts. Here's Why.About the AuthorKailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning.

Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.TMFKailey