8 Steps to Get Out of Credit Card Debt

At a glance:

• Keep making at least the minimum on every debt to avoid fees and credit damage
• Pick a payoff method (avalanche saves the most interest; snowball can be easier to stick with)
• Look for ways to lower your rate (issuer hardship options, balance transfers, consolidation loans)
• If you’re overwhelmed, consider credit counseling and debt settlement to find the strategy that fits your specific needs

Americans’ credit card balances totaled $1.23 trillion in the third quarter of 2025, according to the Federal Reserve Bank of New York. And credit cards remain one of the most expensive ways to borrow: In the Federal Reserve’s Consumer Credit release dated Feb. 6, 2026, the average stated APR on credit card plans was 20.97% for all accounts. With rates that high, it’s easy to get stuck in the quicksand of revolving balances.

But with the right strategy (and a little patience), it’s absolutely possible to climb out of credit card debt. Read on for our top tips on how to pay off credit card debt and save money, as well as the best debt relief programs and how to decide when credit card debt relief is the answer for you.

How to get out of credit card debt

There’s no way around it: Getting out of credit card debt can be hard work. You’ll have to stay dedicated to paying down your balances while avoiding racking up new debt over a period of many months (and sometimes years). These steps can help you design a repayment plan that will save money on interest and whittle away at what you owe. Here’s what to do:

1. Figure out where you stand

Whether you owe $2,000 or $200,000, the first step toward getting out of debt faster is calculating how much debt you have in the first place.

Spend some time listing out all of your accounts and balances; if you’re only focusing on credit card debt, just include those accounts. However, you can also include other debts — like personal loans, auto loans, home mortgage loans and medical bills — if you’re aiming to be entirely debt free.

A spreadsheet works great for this, as you can categorize your debts and easily view existing balances, due dates and required monthly payments (and add your APR, credit limit, promotional APR end date, and any balance transfer fees you’ve paid or will pay).

2. Rank your debts

Tackling all of your accounts at once can be overwhelming, and it’s usually not the most efficient way to pay down debts. Instead, it’s helpful to create some sort of ranking system. You might choose to rank your debts by the size of the outstanding balance (the debt snowball method), interest rate (the debt avalanche method), monthly payment amount or some other factor. This can give you a clear view of where to focus your efforts first.

The debt avalanche method — where you pay down debts with the highest interest rates first typically — will always result in the lowest total amount paid. But the best strategy for you depends on what you’ll be motivated to stick with and what you can balance alongside your other financial responsibilities. (Quick rule of thumb: If you need momentum to stay motivated, snowball can help; if you want the lowest total cost, avalanche is usually best.)

3. Evaluate your budget

How much money you have to dedicate toward paying down your credit card debt is largely contingent on your monthly budget. Before you can really start tackling your debt, you’ll need to sit down and analyze your budget — or, if you don’t have one, create one. 

Your budget should include:

• Income (paychecks, alimony, child support and any other income funds)

• Housing expenses (rent/mortgage payments, utilities, taxes and insurance)

• Monthly debt obligations (minimum payments on loans and credit cards)

• Savings allocations (retirement, college funds and more)

• Typical spending (groceries, transportation expenses, clothing, household goods, dining out and any other regular costs)

Once you understand your household cash flow, you can see how much is available to pay down your credit card debt, and even identify areas where you could spend less. Then, any savings or trimmed spending can go toward paying off credit card balances. If it helps, pick a specific “extra payment” target (for example, an additional $100 per month) and automate it right after payday.

4. Request lower rates

Revolving debt, like credit card debt, is one of the most expensive forms of debt. The Federal Reserve’s latest available data (November 2025) put average credit card APRs around 21% to 22%, depending on the measure used. There’s no general federal maximum APR on credit cards, though certain borrowers (including covered servicemembers) have added protections. 

Some issuers charge very high APRs, especially if you miss a payment at any point. If you have a positive payment history with your credit card company, it’s worth asking them to reduce your interest rate. There’s no guarantee this will work, but it doesn’t cost you anything to ask, and the worst they can say is no. 

Best case scenario? They agree to drop your APR a few percentage points, which saves you money each month when you pay your bill. If you do lock in a lower APR, though, it’s smart to put the savings — or the difference between what you owed with the higher rate and what you owe now with the lower rate — toward your remaining balance each month. This will amplify your efforts to pay off your debt. 

If a standard rate request doesn’t work, ask whether you qualify for a temporary hardship or payment-assistance program.

5. Consider transferring your debt for a lower rate

Another rate-saving option is to “refinance” your credit card debt with the help of a balance transfer. Many credit cards offer introductory APRs on balance transfers for new and existing customers. If you qualify for one of these offers, you can shift a high-interest balance to a new card with a low or even 0% interest rate. Just note that these offers are temporary in nature, usually lasting between six and 18 months. There are often balance transfer fees, as well, which can range from 3% to 5% of the total amount transferred.

If you pay off the balance within the introductory period, though, you can get out of debt for little or no additional finance charges. (Before you apply, make sure you can get a high enough credit limit to actually move the balance — and calculate the monthly payment you’d need to wipe the balance before the promo ends.)

On the downside, if you don’t pay off your debt before the promotional period ends, the interest rate will return to a more normal (higher) APR. You also have to be careful to avoid falling further into debt. Since this method often involves opening a new credit card, you may feel tempted to charge additional purchases since you’ll have a higher credit limit, which won’t help you stay out of debt.

6. Consolidate balances

A personal loan or debt consolidation loan allows you to combine multiple balances into one loan, ideally with a lower interest rate. This can not only save you money on interest but also simplify your debt repayment efforts: Rather than tracking multiple monthly payments and due dates, you now only need to worry about one payment. 

If you’re struggling to make your minimum debt payments each month, consolidation can also help you get a longer repayment term that can free up some money in your budget. Just keep in mind that a longer term can also increase total interest paid — and some loans charge origination fees, so compare the full cost, not just the APR. 

Consolidating debt with a loan is ideal for borrowers with good credit, as they can lock in a lower APR and avoid the potential risk of overspending that comes with opening a balance transfer credit card. Homeowners can also look into secured loan options such as a home equity loan or line of credit (HELOC) for consolidation. 

Using your home as collateral can usually help you get a lower interest rate, and a lower monthly payment, than you might qualify for with other consolidation options, but these can be riskier than unsecured loans as your home is on the line if you fail to make your payments. In general, be cautious about turning unsecured credit card debt into debt secured by your home.

7. Allocate extra funds to amplify your efforts

If you want to get out of debt for less and pay off your credit card balances as quickly as possible, it means directing all additional cash toward those accounts. If you get a raise at work, put it toward your credit card balance. Trim grocery expenses one month or renegotiate the cable bill? Send those savings toward your credit card bills.

While an extra few bucks here and there may seem like a drop in the bucket, chipping away at your principal balance is the easiest way to save money on interest charges. And over time, your efforts can build up to a significant amount. If you’re still using your cards, consider pausing new charges where possible so your extra payments aren’t fighting new spending.

8. Get expert help

Whether you’re overwhelmed by it all, owe more than you think you can pay or are experiencing financial hardship, sometimes it makes sense to call in the experts. There are nonprofit credit counseling organizations in many states that offer low-cost advice on budgeting and debt management plans, so be sure to research what’s available in your area. 

You can also work with debt relief companies, which help consumers find solutions for getting out of debt. This might mean offering debt counseling services, connecting you with consolidation loans or even helping you settle your debt for less than you owe. To find the best debt relief programs, look for companies with transparent fees and specific examples of what sort of savings you can expect by negotiating settlements with your creditors. If a company tells you to stop paying your creditors, make sure you understand the consequences (late fees, collections, potential lawsuits and credit damage). 

Remember that companies that sell debt relief services over the phone generally can’t collect fees before they’ve successfully settled or reduced at least one of your debts. It’s also a good idea to read reviews on sites like Trustpilot and the Better Business Bureau (BBB). You can also check a company’s track record in the Consumer Financial Protection Bureau’s complaint database before you sign up.

This story was originally published February 26, 2025 at 8:35 AM.