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How To Pay Off Credit Card Debt

Negotiating debt and choosing a repayment strategy can make paying off your credit card debt more manageable.

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By Emily Batdorf

Written by

Emily Batdorf

Freelance writer

Emily Batdorf is a personal finance expert specializing in banking, lending, credit cards, and budgeting. Her work has been featured by the New York Post and MSN.

Edited by Barry Bridges
Barry Bridges

Written by

Barry Bridges

Editor

Barry Bridges is the personal loans editor at Credible. Since 2017, he’s been writing and editing personal finance content, focusing on personal loans, credit cards, and insurance.

Reviewed by Meredith Mangan

Written by

Meredith Mangan

Senior editor

Meredith Mangan is a senior editor at Credible. She has more than 18 years of experience in finance and is an expert on personal loans.

Updated March 28, 2025

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

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If you’re struggling to pay off credit card debt, you know how suffocating it can feel. Piles of debt that keep racking up interest can put a huge damper on your budget — and your state of mind. Luckily, you have options. Regardless of your credit card debt balance, there are strategies you can use to formulate a debt payoff plan. 

Get a debt consolidation loan

If you have good credit, a debt consolidation loan — like a personal loan or home equity loan — might simplify your debt payoff plan and save you money on interest. 

When you take out a debt consolidation loan, you use the proceeds to pay off all your credit card debt. 

Then, instead of making payments to several creditors, you repay a single loan over monthly installments. If you qualify for a loan with low interest rates, this strategy could save you money.

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If you’re considering a secured debt consolidation loan — like a home equity loan, for example — make sure you’re comfortable backing your loan with collateral. If you default on the loan, you could lose those assets.

Get a 0% APR balance transfer credit card

A balance transfer credit card lets you transfer high-interest balances to a card with a no-interest promotional period. You’ll pay a fee, but you’ll also enjoy 0% APR during the card’s introductory period — usually six to 21 months, depending on the card issuer. During that time, you can use any money you’d spend on interest to pay down your principal.

Using a 0% balance transfer card can be a great way to make progress toward debt payoff since you won’t be accruing interest during the promotional period. Plus, it can simplify your payments by consolidating them in a single card. But it may not be the best idea if you can’t pay off your debt within the introductory period or if the fees outweigh potential savings. Some credit cards charge a balance transfer fee, typically 3% to 5% of the amount being transferred.

Negotiate credit card debt

Before creating a debt payoff plan, it’s worth giving your credit card companies a call. You may be able to negotiate your credit card debt, and doing so could make your debt payoff journey a little easier.

Before you call, make sure you have your balances and annual percentage rates (APRs) handy. Note any fees, too. When you call, explain your situation and ask if you qualify for any relief. 

You can ask about waiving fees, securing a lower interest rate, or getting on a payment plan. In general, credit card companies want to keep their customers and get paid, so they may be willing to negotiate.

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Important

Keep notes detailing the conversation, and ask for any new terms in writing.

Determine a debt payoff plan

Start by listing out all your credit cards and their balances, APRs, and minimum payments. If you have any other debts — like personal loans, car loans, or home equity loans — list those, too. Keep track of all this information in a spreadsheet.

Making a payoff plan requires knowing your income and expenses. If you don’t already have a budget, spend some time figuring out how much money comes in each month and how much goes out. 

Without knowing how much money you can put toward your debt each month, you’ll have a hard time creating and sticking to a plan or knowing how much you can spend monthly on a debt consolidation loan.

As you organize your numbers, work with a debt payoff calculator. By plugging in your balances, interest rates, and potential monthly payments, you can estimate how long it’ll take to pay off your debt.

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Good to know

Before getting a debt consolidation loan, calculate how much you could save on interest. Use a debt consolidation calculator to estimate potential savings on a personal loan with a lower interest rate than your credit cards.

Other debt repayment methods

Laying out all your debt in a well-organized spreadsheet helps you execute a debt repayment method. There are two popular debt repayment methods, each with its own merits: the debt avalanche method and the debt snowball method.

Debt avalanche

The debt avalanche method pays off your debts one by one according to their interest rates. Here’s how it works:

  1. Organize your debts according to interest rate, from highest to lowest.
  2. Make minimum payments on all your debts. Put any extra cash you can afford toward the debt with the highest interest rate until it’s paid off.
  3. When the first debt is gone, put the money you would have paid toward it — plus any extra — toward the next debt on your list. Repeat until all the debt is gone.

This method ends up saving you money in the long run because you’re getting rid of your highest-interest debt first — which costs the most, relative to your balance. However, it also takes longer to pay off your debt.

Debt snowball

The debt snowball method, on the other hand, has you pay off your debts according to balance. It works like this:

  1. Organize your debts according to balance — from smallest to largest.
  2. Make minimum payments on all your debts. Put any extra cash you can afford toward your smallest debt until it’s paid off.
  3. When the first debt is gone, put the money you would have paid toward it — plus any extra — toward the next debt on your list. Continue until all the debt is gone.

This method isn’t the most cost-effective, but it may be the easiest to stick to. By paying off the smallest balance first, you can celebrate a quick win and use that momentum to keep yourself going.

Other alternatives

If the above tactics aren’t enough to make a significant dent in your debt, you’re not out of options. You can always get support with the alternatives below:

  • Use credit counseling services: Typically employed by nonprofit organizations, credit counselors can help you create a personalized budget and debt payoff plan. They may even set you up with a debt management program (more below), which can help you save on fees and interest. Check out the National Foundation for Credit Counseling to connect with a counselor.
  • Consider a debt management program: A credit counselor may help you negotiate lower monthly payments as part of a debt management plan. You’ll give your monthly debt payments to a credit counselor, and they’ll handle the payment to creditors on your behalf — potentially for a small fee.
  • Explore bankruptcy as a last resort: Bankruptcy isn’t ideal, but it’s something to consider when you’ve run out of other options. Bankruptcy is a legal process that can help give you a clean slate, by either selling your assets to repay debts or setting up a repayment plan. While bankruptcy can provide a fresh start for some, it severely hurts your credit for 7 to 10 years and can make borrowing more difficult in the future.

Compare: Debt Consolidation vs. Bankruptcy: How To Choose

FAQ

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Meet the expert:
Emily Batdorf

Emily Batdorf is a personal finance expert specializing in banking, lending, credit cards, and budgeting. Her work has been featured by the New York Post and MSN.