How to Pay Off Multiple Credit Cards

While going through the ups and downs of financial life, people sometimes find themselves managing multiple credit card balances at once. Sometimes it's necessary to take on a bit of credit card debt when money is tight. Many people end up with multiple credit card balances because of a career setback or a medical crisis.

No matter why you have balances on multiple credit cards, there are several ways to deal with the debt. Reading up on strategies is a smart, empowering step that could get you on the path to creating a better financial future.

Let’s look at a few proven methods to pay off multiple credit cards.  

Pay at Least the Minimum on Every Card

First things first: unless you’re going through severe financial hardship, always keep making the minimum payments on all of your credit cards. No matter which debt payoff strategy you choose, you need to keep making on-time minimum payments for every card. Even if you can only afford to make minimum payments this month, do it. 

Here are a few reasons to keep making minimum payments on multiple credit cards.

Protects you from late fees

As soon as you fail to make a minimum payment, you are late on your credit card bill. That means your credit card issuer could charge you a late fee. The average credit card late fee is about $32. Late fees can feel discouraging, and also add to your total credit card debt. 

Prevents damage to your credit score

On-time payments are a big portion of your overall credit score. Just making the minimum payments on multiple cards will keep your accounts current. Even if you can’t afford to pay down the full balances, this could help you avoid negative hits to your credit from missed payments. 

Helps you focus on top-priority credit cards 

Making the minimum payments could help reduce your mental load. Once you know that your minimums are covered, this can free you up to focus any extra cash on one card at a time. Credit card interest is calculated daily. So any extra payments (beyond the minimum) could immediately help you save money on interest.   

Now that your minimum payments are made, it’s time to learn more about the best debt payoff plans for multiple credit cards. 

Debt Avalanche: Pay High-Interest Cards First

One big drawback of carrying debt on credit cards is the interest fees. Credit cards tend to have some of the highest interest rates you'll find, and those fees can add up very quickly.

One popular way to save money while paying off multiple credit cards is to use the debt avalanche method. With this strategy, you make minimum payments on all your cards, then put any extra money each month toward the credit card with the highest interest rate. 

Let’s say you have three credit cards with APRs of 23%, 25%, and 29%. Pay down the 29% APR card first, even if the other cards have higher balances. Why? Because paying off the highest-interest balance first will help you save the most money in total interest costs.  

Once you’ve paid off your highest-APR credit card, you can roll that payment—and any extra money in the budget—to pay off the next-highest interest card. This creates a powerful, top-down momentum, like an avalanche tumbling down a mountain, knocking down one credit card balance after another.

Debt Snowball: Pay Smallest Balances First

Dealing with credit card debt isn't only about math, numbers, and cost savings—it’s also about feelings. Some people will be more successful in paying off multiple credit cards if they can feel like they’re making progress. Paying off multiple credit cards is often a matter of momentum. 

If that sounds appealing, consider the debt snowball method. Like the avalanche, you start by making all of your minimum payments. Then, any extra funds go towards the card with the smallest balance. This lets you pay off your first card quickly, which can feel like a big win and help you keep it up as you move to the next-smallest balance.

For example, if you have three credit cards with balances of $500, $1,000 and $5,000, you should pay off the $500 card first (while continuing to make on-time minimum payments for the other two). Then, you work on the $1,000 balance. By the time you get to your largest balance, you can use the money you were paying to the other two cards, helping you pay it down faster.

It doesn’t matter which balance has the highest APR. Paying off the smallest one first, and watching that balance go to zero, can feel highly motivating and empowering. Then you can roll your extra money each month toward paying off your next-largest debt. Now you’ve got momentum, just like building a snowball that rolls downhill. 

How to Free Up Money for Extra Payments

Deciding which debts to pay off first is just one part of getting rid of multiple credit cards. You should also take a step back and think about how you could find some room in the budget to make extra payments on your debt. 

Zoom in on your budget

Use a budgeting app or spreadsheet to review your monthly spending and understand where your money really goes. Then, you can find ways to cut back on non-essentials like entertainment, subscriptions, and dining out. 

You might think it will feel painful to cancel your favorite streaming services or cook at home every day, but you could be surprised at how good it feels to have that extra cash in the bank—and available to make extra payments to get rid of debt. 

And remember, these budget cuts don't need to be forever—just until you’ve gotten on firmer financial footing. 

Put financial windfalls toward debt reduction

Did you get a year-end bonus at work? Are you able to earn extra cash from overtime? Are you going to get a few thousand dollars for a tax refund? 

Try to use any one-time windfalls to pay off debt. It can take a lot of discipline to use a big chunk of cash to pay off debt instead of a vacation or other splurge. But it should start to feel much easier as you watch your credit card balances shrink. 

Make it harder to use your credit cards

Another way to find extra cash in your monthly budget is to avoid spending in the first place. Try these strategies to slow down spending:

• Remove your credit cards from any shopping sites or payment apps. 

• Leave your credit cards at home before you go to the store.

• Avoid impulse purchases with a 24-hour cooling off period before you buy anything non-essential

Making your credit cards harder to use could make your credit card debt easier to pay off by keeping it from growing while you're working so hard to get rid of it. 

Consider Consolidating Multiple Debts

If you’re feeling a little overstretched by managing multiple credit cards at once, you might want to think about debt consolidation. Consolidating your debts streamlines multiple debts into one payment. It could simplify your monthly money management and potentially save you money on interest. 

Personal loans for debt consolidation are one option if your credit history qualifies you for a lower rate than you were paying on average on your credit cards. Debt consolidation generally requires fair to good credit and a history of on-time payments. If you have less than fair credit, you might need to consider other debt relief options.  

Also keep in mind that debt consolidation doesn’t get rid of debt, and it doesn’t reduce the amount owed. Debt consolidation is a chance to declutter and reorganize your debts. Especially if you can qualify for a lower-interest debt consolidation loan, it could be well worth it. 

To sum it up, debt consolidation could help if it: 

• Lowers your interest rate 

• Simplifies your monthly payments

• Gives you a clearer picture of how much you owe 

When to Get Professional Help With Credit Card Debt

Looking into professional options for credit card debt relief might be the right thing to do if: 

• You’re going through financial hardship, like job loss or a death in the family

• It’s a struggle to make even your minimum credit card payments 

• Your debt feels overwhelming 

• You have no reasonable way to pay off your debt

There are a few potential ways to get professional help with debt. Let's go over two common options.

Credit counseling and a debt management plan (DMP)

Credit counseling is one way to get professional help with credit card debt. When you work with a nonprofit credit counselor, they can help you deal with multiple credit cards by setting up a debt management plan (DMP) if you qualify. This is a structured plan to fully pay off your unsecured debts in three to five years. 

Your credit counselor may also negotiate with your creditors to reduce your interest rate or waive certain fees. You'll make a single monthly payment to the credit counselor, and they'll pay your creditors. So, it can help simplify your financial life but it doesn't reduce what you owe.

A DMP typically includes a monthly fee. It also isn’t guaranteed to be successful. Some people may still struggle to make the monthly payments on a debt management plan. And three to five years might feel like too much time if you prefer to get rid of debt faster. 

Debt settlement with a professional debt relief company

If you want a potentially faster option for professional help with credit card debt, you might want to think about working with a debt settlement company. Debt settlement involves negotiating with creditors to accept less than the full balance and forgive the rest. 

You can try to do debt settlement as a do-it-yourself (DIY) strategy. If you are falling behind on credit card bills or getting calls from debt collectors, you could contact your creditors yourself and ask them to accept less than you owe on your debt. 

Some people don’t want to tackle debt settlement negotiation by themselves or prefer the support of a team of professionals. When you sign up for a professional debt settlement company’s debt relief program, you let the debt settlement company negotiate with creditors for you. This could help you save time, reduce your stress, and possibly get better results on settling your debt. 

Debt settlement gives people who are suffering from financial hardship the chance to get significant debt reduction, and it often takes less time than credit counseling. Professional debt settlement programs usually take two to four years to complete. 

Next Steps for Paying Off Multiple Credit Cards

Even if you’ve been feeling stressed and paying extra interest and fees because of your debt on multiple credit cards, remember that you have hope, choices, and power. The important thing is to choose a debt payoff strategy and stick with it—whether that’s the debt avalanche, debt snowball, or any debt payoff plan that works for you. Building momentum and watching those credit card debts go toward zero is a powerful feeling. 

And if you need more help than any debt snowball or avalanche can provide, that’s fine too. There’s professional debt relief help to get you in better control of your credit card debt—and put your finances on a more positive path.