How To Pay Off Credit Card Debt | Tools and Tips

Quickly Pay off Credit Card Debt

There is no single way to pay off credit cards. There are proven ways to pay off credit card debt quickly.

These methods can be divided into two categories: Pay each debt individually or combine them into one monthly payment.

Let’s look at the top four ways to repay credit card debt and their advantages and disadvantages.

Decide which option is best for you: Get rid of credit card debt

1. Method of the debt snowball

The “snowball approach” to debt-repayment focuses on the account with the lowest balance.

You will make the most significant payments toward that balance. However, you will still pay the minimum amount on all other accounts. This is to avoid penalties for late payments, hurting credit, or default.

Start by listing all your accounts, from the lowest to most expensive. You should set a budget for all your credit cards accounts. You should pay as much as you can each month to clear the account’s balance.

If your account balance is zero, you can transfer the money that you used to pay the balance to the account with the lowest balance. Keep going until your credit card balances have been paid in full.

Imagine three credit cards with balances of $700 to $1500 and $4,000. The snowball method would allow you to pay the credit card first, with a balance of $700.

Then, you would pay off the $1,500 balance on the card and then take care of the $4,000 balance.


Because you can see improvement quickly, the debt snowball strategy works. It will help you build momentum once you have some wins quickly.

It will be easier to continue working towards your goal of debt-free. Also, it can make the process seem less overwhelming if there are fewer outstanding balances.


The interest rates are not considered in the snowball method. This method could lead to higher interest rates than using another debt-repayment option if the debts you have the highest interest are the ones you have.

A different repayment strategy may be better if your goal is to lower your interest costs to repay debt.

2. The method of avalanche debility

This method, also known as the Debt avalanche strategy, allows you to make your debts with high-interest payments first and then pay the minimum on all your accounts.

Once the highest interest account has been closed, you can apply the money you have saved to the credit card with a lower interest rate. Continue this process until you have paid off all credit card debts.

Imagine you have three credit cards, each with an APR of 22 percent, 18%, and 12 percent. You would first pay off your credit card with an APR of 22% using the avalanche method.

Then, you would pay off the card with the 18% APR. Next, you would take care of the card with a 12% APR.


This method has the main advantage of reducing interest costs. This strategy may be an option for you if you are concerned about the interest you will pay to pay off your debt.


It could be appealing to find a strategy that saves you money to repay your debt. It could take some time to pay off the debt if it has a large balance or the highest interest rate.

It could hinder your efforts to get rid of debt.

Let’s suppose you have $5,000 in credit card balance and a 22 percent APR. It will take 21 months to pay the balance if you make $300 monthly contributions to the account.

It is a long time to wait before you can repay your first debt. It is possible not to get the instant wins that give you a sense of satisfaction if you apply the avalanche method. It is easy to lose motivation to keep moving forward.

The debt snowball may be a better choice if you need the results quickly to remain focused.

3. Consolidate credit card debt with a loan

Personal loans are used to consolidate debts into one monthly payment. Typically, the interest rate is lower. You borrow the money to pay your credit card debts. Then, you make the monthly payment on your loan.


In general, credit card interest rates are higher than personal loans rates. This is especially true if you have good credit. You may be eligible to receive lower interest rates for a debt consolidation loan if you are qualified than what a credit agency is charging.

Plus, a debt consolidation loan can help simplify your finances. Instead of paying multiple installments per month, consolidate all your debts into one payment.

Flexible repayment terms are available for some debt- consolidation loans, so you can pick the one that suits your needs. You can also get a loan from specific lenders to pay your creditor directly. This is an excellent option for paying off credit card balances.


To qualify for a consolidation loan, you must meet the eligibility requirements of the lender. You won’t be eligible for a loan if you have any credit problems.

A loan may offer an interest rate similar to the one you pay on credit cards.

You may not be eligible for a loan large enough to consolidate your debts.

This means you won’t be able to consolidate all of your debts but can continue to make loans to different lenders.

You may also be charged fees by some lenders to cover the cost of the loan.

4. Transfer balance credit card

Balance transfers are possible with credit cards that allow you to transfer balances from one card to another. Credit cards generally have zero-interest balance transfer rates (APR) when balances can be transferred within a specific time after opening the account.


You will not be charged interest if you pay off your balance before the end of the intro period. You may be able to quickly get rid of your debt by being aware of the time limit before the end of the intro offer.


While the option to pay off your debt in interest-free payments may seem the best, the offer you were given may be terminated if you make arrears payments.

The promotional period cannot be extended. Your account will be charged additional interest at the standard balance transfer rate if you have an outstanding balance.

Balance transfers to other cards may incur a fee. Balances cannot be transferred if they exceed the credit limit that you have received on the card.

This approach may not suit you if the amount of debt you owe exceeds your credit card limit.

Even if all your funds could be transferred, credit scores could suffer if the amount you owe exceeds the limit of the balance transfer card that you just bought. You’ll need to search for them, too.

Follow these steps

Here are a few easy steps that will help you get rid of debt.

You can choose which debt repayment method is best for you.

You can create a budget to determine how much money you will set aside each month to pay off your debt.

You can reduce or eliminate as many expenses as you want until you are debt-free.

You can find ways to make extra money. You could do this by getting a different job or selling some items to pay down debts faster.

You should not use credit debit cards until your entire balance has been paid.

It takes patience and perseverance to repay credit card debt. If you aren’t ready to take on the task yourself, it might be worth seeking out some advice. It would help if you looked into a non-profit credit counseling agency.



American express
smallest balance
consolidate debt
products and services
student loans
balance transfer credit card