How to Pay Off Credit Card Debt

Listen, if credit card debt is stopping you from paying your bills or keeping you up at night, I see you. I got my first credit card in college and maxed it out fast. At one point, my husband and I had more than $20,000 in credit card debt. I still remember how ashamed I felt—but you don’t have to stay stuck there!

Here’s how big this problem really is: Americans owed $1.25 trillion in credit card debt as of the first quarter of 2026.¹ And if you’re carrying credit card debt, you’ve got plenty of company—the average borrower owes $6,610.²

It’s time to drop it like it’s hot. (Sheesh, people, I’m talking about dropping your debt!)  Here are all the ways you can attack your credit card debt, starting with the one that actually works.

What Are the Best Ways to Pay Off Credit Card Debt?

The best way to pay off credit card debt is the debt snowball method because it focuses on behavior change and gives you quick wins that build momentum. But it’s far from the only payoff strategy you’ll hear about.

Paying off credit card debt—or any debt—is never easy (and anyone who says different might be scamming you). There are plenty of so-called quick fixes out there for credit card debt, but they’ll only add more money problems to your plate.

So, let’s talk about the most popular credit card payoff strategies and whether or not they’ll actually help you get out of debt.

1. Debt Snowball

The debt snowball method is the best way to pay off credit card debt—and the fastest way. (Trust me: I know from personal experience!) Here’s how the debt snowball works:

• List all your debts from smallest to largest. If you’ve got multiple credit cards, list the balances individually. And if you’ve got other debt, like car loans, personal loans or student loans, be sure to include those too. Don’t worry about the interest rates right now—just focus on the balances.
• Start making minimum payments on all your debts, except the smallest. This is important because you don’t want 1-800-Pay-Me (aka debt collectors) blowing up your phone.
• Attack your smallest debt with any and all the extra money you can get. Knock it out as fast as possible! (I’ll give you some tips on how to do that in a bit.)
• When that smallest debt is gone, take what you were paying on it and put it toward the second-smallest debt until it’s paid off. Continue to make minimum payments on your other debts.
• Keep doing that until all your debts are gone! Remember, each time you pay off a balance, you’ve got that much more money to throw at the next debt—like a snowball rolling downhill. It’s unstoppable. You’re unstoppable. That credit card debt (or any debt) doesn’t stand a chance!

The debt snowball is all about motivation and momentum. Instead of trying to do everything at once, it gives you a game plan to attack your debts one at a time. That’s why you start with the smallest balance first.

Right about now, you might be thinking, Jade, why not tackle the debt with the highest interest rate first? I know, I know. But the truth is, what you really need right now is a quick win. And the best way to start off strong and stay motivated is to knock out that smallest debt ASAP and feel that win.

Take it from someone who knows. When it comes to paying off debt, money is mostly about your mindset, not math. Once you get that first debt behind you, you’ll be on fire and ready to knock out the next debt!

Want to see how quickly you can start knocking out those balances? Run your numbers with our Credit Card Payoff Calculator.

2. Debt Avalanche

Unlike the debt snowball, the debt avalanche focuses on paying off the debt with the highest interest rate first. But the problem with this method is rooted in motivation.

With the debt avalanche, your first targeted debt might be a huge balance that could take a long time to pay off. But you need quick wins that encourage you to keep going! The debt avalanche sounds nice in theory, but it takes too dang long to see real progress.

Remember: Paying off debt is less about math and more about behavior. When you experience a win, your body gets a shot of dopamine and wants to continue that behavior. So, sorry, debt avalanche, but in the words of Ariana Grande, “Thank you, next!”

3. Credit Card Balance Transfer

A credit card balance transfer is when you move all your credit card debt onto one new credit card that has a low interest rate. It shuffles your debt around, but last time I checked, moving the mess around doesn’t make it disappear.

Here’s the thing: I’m not mad at you for considering this. But it’s not the solution. You might lower the temperature of the fire temporarily, but please know, you’re still on fire. You didn’t actually pay anything off.

You could also get hit with transfer fees and risk going blind reading the fine print. Okay, that last part is an exaggeration—but there’s no exaggerating that huge spike in your interest rate when you make just one late payment or the introductory period expires. Even though there are laws meant to protect consumers, credit card companies still find sneaky ways to profit off your oversight.

Remember, what you owe (aka the debt) is your main problem. The interest rate is just an annoying symptom. So let’s stay focused on paying off that credit card as fast as possible, instead of moving the debt around—because it’s burning up your money!

4. Personal Loan

Some people take out a personal loan to pay off their credit cards so they’re left with just one monthly payment. But a personal loan just trades one loan for another and keeps you stuck in the same debt cycle. It feels like relief because your credit cards show a $0 balance. But the debt just moved to a new lender with its own interest rate, fees and monthly payment. Instead of just moving your debt around, you need to deal with it head on.

5. Debt Consolidation

When you consolidate your debt, you basically take out a loan to combine your debts into one single payment. This sounds like a good idea until you realize that it actually extends the length of your loan, which means you’re in debt for way longer.

Also, in most cases, the interest rate still depends on your credit score. I’m not a fan of the credit score (aka your “I love debt” score), but if you’ve got credit cards, you’ve got one. And you should know, if your credit is a hot mess, your interest rate will be too. Plus, if you do happen to snag a low interest rate that seems too good to be true, know that bad boy will usually go up over time.

Debt consolidation goes by all kinds of names—like credit card balance transfers, home equity lines of credit (HELOCs), and student loan consolidation. But don’t let the fancy labels fool you. At the end of the day, it’s still debt!

6. Debt Settlement

Debt settlement companies will charge you a fee and promise to negotiate with your creditors or reduce the amount you owe. Wait a minute—why pay someone to do something you can easily do yourself for free?

The truth is, these companies usually just take your money and leave you drowning in the debt you already had—plus all the new late fees that built up when no one was paying on your balance.

7. Credit Card Forgiveness

Credit card forgiveness is when you try to get a creditor to accept less than the full amount you owe. But this method can leave you with extra fees, damaged credit and the same debt you started with.

So watch out for debt relief companies that advertise credit card debt forgiveness! These companies may ask you to stop paying your bills so they can “negotiate” for you. Others will charge huge up-front fees just to promise you some government program that doesn’t exist. And some just slap a new label on high-interest consolidation loans and call it forgiveness.

Do you see a trend emerging here? None of these options are a true solution. They’re just hoaxes that’ll keep you busy but not productive in paying down your debt.

8. 401(k) Loan

A 401(k) loan lets you borrow money from your retirement savings and pay it back over time with interest. But unless you’re facing bankruptcy or foreclosure, never ever borrow from your 401(k) to pay off your debt. I repeat—never borrow from your retirement! Not only will you get hit with penalties, fees and taxes on your withdrawal, but you’re also stealing from your own future. And I know y’all know better than that!

Oh, and if you mess around and get fired or quit your job, the full amount of that 401(k) loan immediately becomes due. That’ll turn your emergency into a full-blown crisis.

9. Home Equity Loan

A home equity loan is a second mortgage that borrows against the equity you’ve built up in your home and uses your house as collateral. In other words, you’re trading what you actually own of your home for even more debt. This puts you at risk of losing your house if you can’t pay back the loan on time. Talk about making a bad situation worse.

I’m going to go ahead and say that out of all the terrible options we’ve talked about so far, this one may take the cake as the worst! Don’t mess with a home equity loan unless you also like the idea of possibly losing your home.

10. Borrowing Money From Family and Friends

Borrowing money from family and friends is a quick way to make things weird with the people you love. I don’t care who you are or how rich Uncle Boo Boo might be—once money gets involved, that relationship changes. Not only will it make Thanksgiving dinner extremely uncomfortable, but it also turns your loving uncle (or your friend) into a debt collector. No family needs that extra tension—especially around the dinner table.

And just so you know, credit card debt doesn’t automatically go away when someone dies, which can make things even messier for the people you love.

How Can You Pay Off Credit Card Debt Faster?

Cut up those cards, get on a real budget, cut your spending, and find ways to bring in extra income. Do all four, and you’ll throw some serious fuel on that debt snowball.

Cut Up Those Cards

First things first, it’s time to put those scissors to work. You can’t ditch debt for good if you’re still swiping credit cards. So cut them up and close the accounts—yes, even the store cards.

You might think those credit card points or cash-back rewards are worth it. They’re not. It’s easy for credit companies to hand out 1% cash back when they’re making billions off interest, fees and people falling for their trap. Don’t play their game.

And yeah, at first you might feel a little out of place—like showing up to a party dressed as Wonder Woman only to realize it wasn’t a costume party. But here’s the truth: A debit card (or cash) will do everything a credit card will do. I’ve booked flights, rented cars and even bought a house without a credit card. The only difference is, I wasn’t spending money I didn’t have.

Get on a Budget

A budget is like a toothbrush—everyone needs one, and without it, things get gross real quick. If you really want that credit card debt gone, you need a plan for your money. I’m talking about a zero-based budget. It’s up to you to tell your money what to do and where to go. And in this case, you need as much of your money as possible going straight toward your debt.

Go ahead and create a budget with EveryDollar. Start by taking care of your essentials, then budget for the minimum payments on all your debts. Once those are covered, take a hard look at what you’re spending each month on the fun stuff (eating out, trips to the nail salon, streaming services).

Next, grab your credit card statement and budget to pay off the full statement balance by the due date. Got extra money in your budget? Great. Use it to attack your smallest debt first with the debt snowball and knock that balance out fast.

Lower Your Spending

Once you’ve created your budget, it’s time to free up some cash to help you pay down your credit card debt. So take a good, hard look at your budget. What expenses can you cut?

If you need some ideas of where to start cutting, ya girl has got a few:

• Restaurants (eating out will eat into your budget big-time)
• Entertainment (this includes sports games or going to the movies)
• Cable or streaming subscriptions (for now, sit through the ads on those free versions)
• Daily coffee runs (you can be your own barista)

Also, find ways to lower your monthly bills and save money in the categories you can’t cut completely. You can do this by watching your electricity use, meal planning, or choosing generic over name brands. And when you shop, use cash—it helps you curb those impulse buys.

If you make enough small changes, you’ll feel like you got a raise! Just make sure you’re also intentional about putting your freed-up money toward paying off debt—not wasting it on unnecessary purchases.

Earn Extra Money

Another way to help you get rid of that credit card debt faster? Find ways to increase your income. Try selling your stuff. Or see if you can work extra hours at your current job. You can also snag a side hustle (or two!), like driving for Uber or delivering groceries with Shipt.

And listen, you don’t have to take my word for it. Carl, a member of THE Ramsey Baby Steps Community Facebook group, shared this advice for anyone working to get out of debt:

“Sell anything you can, and scrape out the pennies from the corners. It’s not as big of a mountain as you think, but it takes perseverance and determination to climb. Make every penny count, and involve the kiddos—let them know a little sacrifice now means bigger and better things in the future. You can do this! It will be well worth it!”

Don’t be afraid to use the skills you have to tutor, babysit or take freelance gigs. You could also do what I did and teach music or sell cakes. Either way, you better be working! Will it take more of your time and energy? Yes. But will it help you pay off your debt faster? Most definitely!

Life is about trade-offs. This is just a season of cutting back and working harder, but it means you’re on the path to being credit card debt-free. And that’s worth every ounce of sweat you’ll pour into this thing. I did it. I know you can do it too!