How To Get Out of Credit Card Debt in 10 Steps or Less

If you’re feeling weighed down by credit card debt, don’t worry: You’re not alone. According to the Federal Reserve Bank of New York Household Debt and Credit Report released in February 2026, Americans owed $1.28 trillion on their credit cards at the end of the fourth quarter of 2025.

The fastest ways to get out of credit card debt are paying more than the minimum each month, using the debt avalanche or debt snowball method, and consolidating your balances with a balance transfer card or personal loan. Paying more than the minimum lowers your principal faster and cuts the total interest you owe. Pairing that with a clear payoff strategy helps you stay on track until your balance hits zero.

Key Takeaways

• Getting out of credit card debt starts with paying more than the minimum on each card every month — even a small extra payment reduces your principal, cuts the interest charged the following month and shortens your overall payoff timeline.

• The debt avalanche and debt snowball methods offer two structured paths to zero — the avalanche targets your highest-APR card first to save the most in interest, while the snowball eliminates the smallest balance first to build motivation.

• A balance transfer card with a 0% intro APR or a debt consolidation loan can lower the interest working against you while you pay down what you owe; have a plan to pay off the full balance before any intro period ends.

• If you can't make minimum payments, contact your issuer about hardship programs or connect with an accredited nonprofit credit counselor through the NFCC at nfcc.org — acting early gives you more options and helps you avoid collections.

• To get started, list every card balance, APR and minimum payment, then pick a payoff method and set a monthly milestone so you have a clear, trackable path to paying off your debt.

Summary generated by AI, verified by MoneyLion editors

1. Add Up What You Owe

Pull up every credit card statement and write down the balance, annual percentage rate (APR) and minimum payment for each card. Total the balances so you know the exact number you are working with. Seeing one clear figure helps you choose the right payoff method and set a realistic monthly target.

2. Create a Budget

Creating a budget starts with knowing your income and expenses, then setting goals to pay off debt, boost savings and stay on track. Allocate as much money as you can towards paying down your debt while still covering essential expenses.

👉 Budgeting Tips to Avoid Credit Card Debt

3. Track Your Spending for 30 Days

Log every purchase for 30 days using a budgeting app or a simple spreadsheet. Sort each charge into fixed bills, variable spending and debt payments. This shows you exactly how much extra cash you can send to your credit cards each month and which categories you can cut to free up more.

4. Pay More Than the Minimum Each Month

Send more than the minimum payment on every card every month, even if it is only $20 extra. Minimum payments mostly cover interest, so paying extra goes straight to your principal. A lower principal means less interest charged the next month, which shortens your payoff timeline and saves you money over the life of the debt.

5. Prioritize Debts

Consider using either the debt avalanche or debt snowball method to tackle your debts. 

What Is the Debt Avalanche Method?

The debt avalanche method targets your highest-APR card first while you pay the minimum on the rest. Once the highest-rate card is paid off, you roll that payment into the card with the next-highest APR. This approach saves you the most money on interest over time.

Example: You have a card at 24% APR with a $3,000 balance and a card at 18% APR with a $2,000 balance. You pay every extra dollar toward the 24% card first because it is costing you the most in interest each month.

What Is the Debt Snowball Method?

The debt snowball method targets your smallest balance first while you pay the minimum on the rest. Once the smallest balance is paid off, you roll that payment into the next-smallest balance. This approach gives you quick wins that help you stay motivated.

Example: You have a card with a $500 balance and a card with a $4,000 balance. You pay every extra dollar toward the $500 card first, so you can knock it out in a month or two and feel real progress.

Compare the Main Debt Payoff Strategies

Each payoff strategy works best for a different type of borrower. Use the comparison below to pick the one that fits your balance, credit score and budget.

6. Negotiate a Lower Rate With Your Credit Card Company

You can ask your credit card company for a lower interest rate or a temporary payment plan, and many issuers will work with you if you call and ask. Here is how to do it.

• Call the number on the back of your card: Tell the agent you want to discuss your account.

• Ask for the hardship or retention department: These teams have more authority to adjust rates and offer payment plans.

• Explain your situation in one or two sentences: Mention how long you have been a customer and that you want to stay current on payments.

• Make a specific ask: Request a lower APR, a waived annual fee or a short-term hardship plan that pauses interest.

• Get the agreement in writing: Ask for an email or secure message confirming the new terms before you hang up.

If the first agent says no, call back another day and try again. Different agents have different authorities to approve changes.

7. Explore Balance Transfers

A balance transfer credit card with a low or 0% introductory APR can give you the breathing room you need to pay down debt without being crushed by interest charges. Transferring high-interest balances to these kinds of cards can speed up your debt payoff, but be sure to have a plan in place to pay off the full balance before the introductory period expires.

MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences.

8. Consider Debt Consolidation

If you find yourself juggling multiple credit cards and feeling overwhelmed, consider consolidating your debts into a single debt consolidation loan. This can simplify your payments and potentially save you a significant amount of money. Look for a loan with a lower interest rate than what you’re currently paying, and be sure to evaluate the terms and associated fees. 

MoneyLion can help you find personal loan offers based on the info you provide. You can get matched with offers for up to $50,000 from top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

9. Increase Your Income

Think outside the box and explore opportunities to earn extra cash. Maybe you can take on a part-time job, dabble in freelancing, or start a side business. 

10. Set a Payoff Date and Track Progress

Pick a target payoff date and break your total debt into monthly milestones. Check your balance every two weeks and mark the drop in a notes app or on a printed tracker. Watching the number fall keeps you focused and helps you spot when a missed payment or new charge pushes your date back.

Learn More: 5 Tips for Paying Off Debt

What To Do if You Can't Make Minimum Payments

If you can't cover your minimum payments, you have options beyond skipping bills and damaging your credit. Acting early gives you more choices and helps you avoid collections.

Hardship Programs

Most major card issuers offer hardship programs that can lower your APR, waive late fees or set up a short-term payment plan. Call your issuer and ask what hardship options are available for your account.

Nonprofit Credit Counseling

A nonprofit credit counselor reviews your full financial picture and helps you build a payoff plan, often for free. You can find an accredited agency through the National Foundation for Credit Counseling (NFCC) at nfcc.org. A first session usually lasts 30 to 60 minutes.

Debt Management Plans (DMPs)

A debt management plan (DMP) is a structured repayment program run by a nonprofit credit counseling agency. The agency negotiates lower interest rates with your creditors and you make one monthly payment to the agency, which then pays each card on your behalf. Most DMPs take three to five years to complete and require you to stop using the credit cards enrolled in the plan.

How To Get Out of Credit Card Debt FAQs

What is the fastest way to pay off credit card debt?

The fastest way to pay off credit card debt is to use the debt avalanche method while paying more than the minimum on your highest-APR card. A balance transfer card with a 0% intro APR can speed things up by pausing interest for 12 to 21 months. The right mix depends on your credit score and how much you can pay each month.

How does the debt avalanche method work?

The debt avalanche method works by paying extra on the card with the highest APR while you make minimum payments on the rest. Once that card is paid off, you move the extra payment to the card with the next-highest APR. This order saves you the most in interest because you knock out the most expensive debt first.

Will paying off credit card debt hurt my credit score?

Paying off credit card debt usually helps your credit score because it lowers your credit utilization ratio. Your score may dip a few points if you close a paid-off card, since closing accounts can shorten your average account age. Keeping the account open with a zero balance is often the better move.

Should I use savings to pay off credit card debt?

Using savings to pay off high-APR credit card debt often makes sense because most savings accounts earn less than the interest rates credit cards charge. Keep at least one month of expenses in your emergency fund before you drain savings to pay down cards. That way, one surprise bill does not push you back into debt.

Key Terms

• APR: Annual percentage rate — the yearly cost of borrowing money on a credit card, expressed as a percentage. The higher the APR, the more interest you're charged each month on any unpaid balance.

• Minimum payment: The smallest amount required to keep your credit card account in good standing each month. Most of it goes toward interest rather than principal, which extends the time and total cost to pay off your balance.

• Debt avalanche method: A payoff strategy that directs extra payments to the card with the highest APR first while making minimum payments on all others. Once that card is paid off, the payment rolls to the next-highest rate, saving the most in interest over time.

• Debt snowball method: A payoff strategy that targets the smallest balance first while making minimum payments on the rest. Each balance eliminated frees up more cash to roll into the next one, building momentum through early wins.

• Balance transfer: Moving an existing credit card balance to a new card — often one with a low or 0% introductory APR — to reduce interest charges during repayment. Any remaining balance at the end of the intro period is subject to the card's regular rate.

• Debt consolidation: Combining multiple debts into a single loan with one monthly payment, ideally at a lower interest rate than what you're currently paying. It simplifies repayment, but it's worth reviewing total costs and fees before you proceed.

• Debt management plan (DMP): A structured repayment program run by a nonprofit credit counseling agency. The agency negotiates lower rates with your creditors, and you make one monthly payment to the agency, which distributes it on your behalf. Most DMPs take three to five years to complete.

• Credit utilization ratio: The percentage of your total available credit that you're currently using. Paying down card balances lowers this ratio, which can help improve your credit score.

Sources:

• CFPB: What is a credit card interest rate? What does APR mean?

• CFPB: What is the difference between credit counseling and debt settlement, debt consolidation, or credit repair?

• Federal Reserve Bank of New York: Household Debt and Credit Report

• NFCC: Find a Credit Counselor

Summary generated by AI, verified by MoneyLion editors