10/11/2025
Here are six tips to help you create a plan to pay off your credit card debt.
1. Avalanche method
Using a strategy called the debt avalanche method, you make the minimum payments on all your debts and put extra money toward the balance with the highest interest rate. Once that debt is paid off, you put any extra money toward the balance with the next-highest interest rate and so on. This strategy can help you save money in the long term because high-interest debts are more costly.
2. Snowball method
If you would rather build momentum, the debt snowball method might make more sense. With this strategy, you make the minimum payments on all your debts but then focus on putting any available money toward paying off your smallest balance first. Once you’ve paid that off, you can dedicate any funds that have been freed up to your next smallest debt and so on.
3. Payment amounts
You should always pay as much of your full credit card balance as you can, according to the Consumer Financial Protection Bureau (CFPB). Paying more than the minimum payment can help reduce debt in a couple of ways, including:
Lowering your debt more quickly. Paying more can help cover interest charges and decrease the total balance on your credit card.
Limiting the interest you’ll owe over time. The less interest charged, the lower your minimum payments could be.
4. Spending
When you reduce spending, you can put more money toward debt and potentially save money on interest. Here are some ways to manage your spending.
Create a budget. There are lots of different ways to budget, but in general, it goes something like this: List your monthly expenses, such as rent, utilities and groceries, along with your debts, such as credit card balances and student loans. Write down how much you earn each month, and subtract your bills and minimum required debt payments. The amount you have left over is a starting place to consider how much extra to put toward your debt payoff each month. You might even take advantage of your credit card’s features to help you budget.
Set a goal. Once you know how much debt you have and how much you can pay toward it each month, figure out how long it will take to pay off the debt. Mark that date on your calendar. Having a goal in mind can keep you focused and motivated.
Track your spending. Use whatever tracking method works best for you, whether that’s an app, a spreadsheet or a pen and paper. Write down everything you spend money on, and review the log every few weeks. This is a good way to better understand your spending habits and find areas where you can cut back.
Tell a friend or family member. If they know you’re working toward a debt payoff goal, your loved ones may be able to offer support. They might also help you think of ways to budget or fun things to do for free, both of which could help you stick to your goals.
5. Debt consolidation
Debt consolidation allows you to combine multiple debts into a new account with one monthly payment.
Balance transfer credit card
A balance transfer credit card offer lets you consolidate multiple balances into one credit card account with a new issuer. These cards may come with a low introductory rate, which could help you save money on interest. But the interest rate will increase when the introductory period ends. And the card’s standard annual percentage rate (APR) will apply to any remaining balance. So it’s a good idea to try to pay off the balance before that happens.
Let’s say you have $5,000 in credit card debt, and you open a balance transfer credit card with a 0% introductory APR. If the promotional period lasts 18 months, then you’d need to pay about $278 a month to pay off the balance before the interest rate increases.
Some cards may charge balance transfer fees. It’s a good idea to understand the card’s terms and conditions before you apply.
Debt consolidation loan
Debt consolidation loans are personal loans that can be used to combine multiple debts into one new account with a single monthly payment. A debt consolidation loan won’t erase your debt, but combining multiple balances into a single monthly payment may make it easier to manage.
Keep in mind that debt consolidation loans often charge interest, so you could end up paying more per month than you planned. It’s also important to make sure you understand the loan terms and conditions before applying. Lenders have their own policies, and not all lenders offer debt consolidation loans.
6. Support options
If you’re having a hard time keeping up with your credit card debt, the CFPB says “many credit card companies may be willing to help if you’re facing a financial emergency.” The CFPB goes on to say that you don’t have to be behind on your monthly payments to ask for debt relief assistance, either.
If you’re having trouble with your monthly payments, you can try contacting your credit card issuer as soon as possible. Rather than letting debt and missed payments stack up, reach out to see what your options are.
You might also consider reaching out to a credit counselor for help. Credit counselors can do things like give advice, help with budgeting, and organize debt management plans.
The CFPB says that most credit counseling companies are nonprofit organizations. And to find a reputable credit counselor, the CFPB says you can go to the Financial Counseling Association of America or the National Foundation for Credit Counseling. Or, check the U.S. Department of Justice’s list of approved credit counselors.
