1. CREDIT CARD DEBT

7 Tips to Help You Pay Off Credit Card Debt

Tips on paying off credit card debt
 Updated 
Jun 4, 2025
Key Takeaways:
  • Options for dealing with credit card debt include cutting expenses, debt consolidation, and debt relief.
  • Knowing those options can help you choose the debt relief strategy that’s best for your situation.
  • The reward isn't just getting out of debt, but also getting better at avoiding debt in the future.

Dealing with credit card debts and other bills doesn’t have to feel like a losing battle. There are several tactics that can help you get out of debt and stay that way. Using a variety of these approaches can make the job easier. 

If you’d like to ditch your debt and take back control of your finances, here are seven approaches that might help. 

1. Decide Which Debt to Attack First

If debt is your problem, start by getting to know the enemy.

Any debt relief approach you use will be more effective if you prioritize which debts to attack first. So list all of your debts. Include the amount, monthly payments and interest rate for each. 

This will help you recognize which debt is causing you the most problems. For example, credit card debt generally has a higher interest rate than other forms of debt. Some credit cards have higher interest rates than others. Knowing where your debt costs are highest will help you decide what to tackle first. 

2. Take a Break From Your Credit Cards

Credit cards are convenient and easy to use. Unfortunately, that convenience can lead to a bill that’s bigger than what you can afford to pay at the end of the month.  

The first step to solving a problem is to stop it from getting any worse. Take a break from using your credit cards. Don’t automatically take them with you whenever you leave the house—they can be expensive company. Put them in a safe place at home, where they can’t get you into any further trouble.

Log into your credit card account online to check for the option of temporarily locking your credit card from use. This step might help you go cold turkey on credit card usage.

This doesn’t have to mean giving up your credit cards for good. It can be a temporary measure to get your debt under control. Then you can let your cards out of the penalty box.

3. Figure Out What’s Draining Your Budget

Many people with debt problems can’t understand where all their money’s going. If you have that problem, it’s time to solve the mystery.

Start keeping track of your spending. Save your credit card receipts. Look at bank and credit card statements to discover how you spend your money. Sort your spending into categories—housing, groceries, transportation, entertainment, etc. Be sure to include any ongoing loan payments in your record of regular spending.

This record can form the basis of a budget. Once you have a handle on your expenses, add them up and subtract them from your take-home pay. If your spending exceeds your income, you have some work to do—and that’s where the next few tips can help. 

4. Cut Expenses to Free Up Money For Debt Reduction 

Once you’ve made a note of all your expenses, look for areas where you can make some adjustments. 

Separate the wants from needs. Decide which expenses are necessary for day-to-day life. Other expenses are opportunities to trim some fat from your budget. 

Consider eating out less often. Cut subscriptions you can live without. Also, think about buying generic for certain products instead of name brands—it all adds up! 

Not all these cuts have to be permanent. The idea is to find some extra money that can go toward debt reduction. Reducing debt will help you breathe easier, and in the long run will leave more room in your budget for the things you want.

5. Choose a Method to Conquer Your Credit Card Debt

Once you’ve freed up some extra room in your budget, start putting more money toward paying down debts. Now you have to decide where that money should go.

A key to paying down credit card debt is to pay more than the minimum required payment whenever you can. Making room in your budget may give you the chance to do this, but which credit card account should you put that extra money toward first?

Naturally, you should continue to make the required payments on all your debts. But there are two possible approaches to paying extra: the avalanche and the snowball methods.

The avalanche method of paying off credit card debts

The avalanche method says you should put extra payments toward your debts with the highest interest rates first. 

Why is this called the avalanche method? Because if you attack the highest interest rate debt first, it'll have the biggest impact on the amount of interest you have to pay. That means more of each subsequent payment can go toward paying down principal instead of interest. As a result, your debt reduction builds greater and greater force, like an avalanche.

So look at your credit card accounts to figure out which card has the highest interest rate. Start putting extra money toward paying down that balance first. Also, avoid using that card. This will give your debt payments the most bang for your buck.

The snowball method of paying off credit card debts

The snowball method is less efficient than the avalanche method, but some people find it more satisfying. 

With the snowball method, instead of paying down your most expensive debt first, you pay down your smallest debt first. While this won’t reduce your overall interest charges, it'll help you start to reduce the number of accounts on which you’re carrying balances.

The idea is that each outstanding balance you eliminate gives you a clear feeling of making progress. After you get rid of your smallest debt balance, you move on to the next smallest. Each one you pay off gives you one fewer bill to pay each month. This can motivate you to keep up your debt reduction efforts until the entire problem is solved. 

6. Debt Consolidation Could Make Your Debts More Manageable

Debt consolidation is taking one new loan to pay off multiple smaller loans. If you have two or more unpaid balances such as credit card debts, you can combine them and make one payment. 

A debt consolidation loan can be beneficial for many reasons. It could simplify your finances by reducing the number of bills you pay. If you pay off higher interest debt with a lower interest loan, consolidating could reduce the total amount of interest you pay. Plus, you may be able to improve your credit score by replacing revolving debt (credit card balances) with an installment loan (like a personal loan or home equity loan). Installment debt doesn’t affect your credit score the same way revolving debt does.

While debt consolidation works best if you can lower your interest rate, it can also be used to lower your total monthly payment. Also, a loan that gives you more time to pay could give you breathing room in your monthly budget.  

Keep in mind that taking longer to pay off your debt may cost you more in the long run. However, if you're finding your monthly payments hard to keep up with, lowering that monthly total may give you the break you need. 

The key to winning with debt consolidation: Don’t run your credit card balances back up after you’ve paid them off with a loan. Debt consolidation should be part of a larger plan to get out of debt and stay out of it.

7. Still Struggling With Debt? Get Some Debt Relief Help

It’s not always possible to solve all your problems on your own. Fortunately, if you’ve tried the methods discussed above and still can’t pay off your credit card debt, there are ways to get help.

Debt management plan and credit counseling

If you’re at risk of falling behind on your payments, a debt management plan (DMP) might be an option to consider. DMPs are administered by credit counselors. Credit counselors can help you learn to budget and manage your finances. Most are nonprofit organizations that can assist you in setting up a debt repayment plan. They can provide education and guidance to keep you on track.

A DMP is designed to pay off your unsecured debt within 3-5 years. You typically meet with a counselor and they help you figure out the most effective way to use your resources to pay off your debt. They can also help negotiate better repayment terms with creditors. Based on this, the credit counselor will set up a payment plan and help manage payments for you. 

DMP costs vary. Usually they involve a monthly fee of around $25 to $50, plus a one-time set-up fee. On the plus side, credit counselors may get your creditors to waive fees and/or lower the interest rate. To make sure the problem doesn’t get worse, you have to agree not to use credit while you're in the DMP. 

Enrolled debts are reported as being in a DMP, which could temporarily affect your credit score. Also, if you close credit card accounts before they’re paid off (which you might be asked to do), expect a negative impact on your credit. In the long run though, getting rid of troublesome debt should eventually put you on track toward a better credit score.  

Counselors can also help you learn to reduce your dependence on debt. 

Debt resolution

If you’re already behind on your bills, or if you know you can’t afford to fully repay all of your debts, you might consider resolving or settling your debt.

Debt settlement is designed to close out your debts for less than the full amount owed. Anyone can attempt debt resolution on their own. You contact your creditor, explain your situation, offer an amount that’s less than you owe, and hope they accept it. 

For some consumers, it’s easier and more effective to let a reputable professional debt settlement company do the heavy lifting of negotiating with your creditors. With their experience, the process might be easier, less stressful, and more successful.  

To make an offer to your creditor, you need to have money set aside. That can be hard to accomplish if you’re already struggling to keep up with your debt payments. To save up funds for making offers, most people choose to stop paying their debts. If you do this, expect credit score damage. On the other hand, missing payments does send a clear signal to your creditors that you’re in financial trouble. 

In the end, the goal is to get those debts settled so you can start building a better financial future. 

The Opportunity to Rebuild Credit

Everyone’s problems are different. You need to choose which of the above debt reduction techniques are right for your situation.

Whichever path you take, keep in mind that the destination is the same. Imagine a life where less of each paycheck is going toward debt payments. Your credit score will be strong enough for you to get affordable credit when you need it. And you’ll have control over your budget so you don’t have to rely on continuous borrowing.

That’s a life that can reward you for all the work you put into paying off your credit card debt.

Debt relief by the numbers

We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during November 2024. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.

Credit Card Usage by Age Group

No matter your age, navigating debt can be daunting. These insights into the credit profiles of debt relief seekers shed light on common financial struggles and paths to recovery.

Here's a snapshot of credit behaviors for November 2024 by age groups among debt relief seekers:

Age groupNumber of open credit cardsAverage (total) BalanceAverage monthly payment
18-253$9,011$282
26-355$12,647$390
35-506$16,172$431
51-658$16,725$529
Over 658$17,047$499
All7$15,142$424

Whether you're starting your financial journey or planning for retirement, these insights can empower you to make informed decisions and work towards a more secure financial future

Personal loan balances – average debt by selected states

Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.

In November 2024, 44% of the debt relief seekers had a personal loan. The average personal loan was $10,718, and the average monthly payment was $362.

Here's a quick look at the top five states by average personal loan balance.

State% with personal loanAvg personal loan balanceAverage personal loan original amountAvg personal loan monthly payment
Massachusetts42%$14,653$21,431$474
Connecticut44%$13,546$21,163$475
New York37%$13,499$20,464$447
New Hampshire49%$13,206$18,625$410
Minnesota44%$12,944$18,836$470

Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.

Regain Financial Freedom

Seeking debt relief can be the first step toward financial freedom. Are you struggling with debt? Explore options for debt relief to regain control of your finances. It doesn't matter how old you are or what your FICO score or credit utilization is. Take the first step towards a brighter financial future today.

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Author Information

Richard Barrington

Written by

Richard Barrington

Richard Barrington has over 20 years of experience in the investment management business and has been a financial writer for 15 years. Barrington has appeared on Fox Business News and NPR, and has been quoted by the Wall Street Journal, the New York Times, USA Today, CNBC and many other publications. Prior to beginning his investment career Barrington graduated magna cum laude from St. John Fisher College with a BA in Communications in 1983. In 1991, he earned the Chartered Financial Analyst (CFA) designation from the Association of Investment Management and Research (now the "CFA Institute").

Frequently Asked Questions

Why should credit card debt often be the first type of debt to get rid of?

For many borrowers, credit card debt is their biggest problem. It often has a higher interest rate than other forms of debt. Credit cards also allow you to add to your debt repeatedly, which is often the source of the problem.

Is credit card debt a good candidate for debt settlement?

Yes, because credit card debt is usually unsecured debt. That means there’s no collateral the creditor can claim if you don’t pay the debt. That’s why they may be willing to accept less than the full amount you owe.

Should I close my credit card accounts to help me stay out of debt?

Not necessarily. Having older credit accounts can help your credit score. So don’t be in too much of a hurry to close those accounts, unless they charge an annual fee. Otherwise, start by putting credit cards in a safe place where you won’t use them as much.