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

The fastest way to get out of credit card debt is to stop new charges, list every balance, then throw every extra dollar at the card with the highest interest rate while paying the minimum on the rest.

That plan works, but the math is brutal right now. Americans' total credit card debt is $1.252 trillion as of the first quarter of 2026, according to the latest consumer debt data from the Federal Reserve Bank of New York. The average annual percentage rate (APR) sits at 22.15% as of May 2026, according to Federal Reserve data, which means a $6,500 balance costs you roughly $120 a month in interest before you pay down a single dollar of what you owe.

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Here are the steps to follow if you want to pay off credit card debt.

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Key Takeaways

• How to get out of credit card debt starts with stopping new charges and listing every balance: Then throw every extra dollar at your highest-rate card while paying the minimum on the rest.

• The math is tough right now: The average credit card APR is 22.15% as of May 2026, so a $6,500 balance costs roughly $120 a month in interest before you pay down any principal.

• Pick a payoff method that fits you: The avalanche (highest APR first) saves the most interest, while the snowball (smallest balance first) builds motivation.

• Consolidation can slash your rate: A 0% intro APR balance transfer card or a fixed-rate personal loan can cut interest — if you have a clear payoff plan.

• A phone call can lower your rate: Most issuers offer hardship programs, and the CFPB advises calling as soon as you know you'll struggle to pay.

• Automate and track progress: Autopay prevents costly missed payments, and watching the balance shrink keeps you motivated to finish.

Summary generated by AI, verified by MoneyLion editors

1. Know Your Total Debt so You Can Build a Real Payoff Plan

The takeaway: You can't pay off what you haven't added up.

Pull up every credit card statement and write down the balance, 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. Build a Budget That Frees Up Cash for Payments

The takeaway: Every extra dollar you find is a dollar you can throw at your balance.

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.

3. Stop Adding to the Problem — Put the Card Away

The takeaway: You can't pay down a balance you keep growing.

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 To Escape the Interest Trap

The takeaway: Minimum payments are built to keep you in debt for years.

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.

Learn More: How To Pay Off $10,000 in Credit Card Debt

5. Pick a Payoff Method That Fits Your Personality

The takeaway: Avalanche saves you the most money. Snowball keeps you motivated.

Consider using either the debt avalanche or debt snowball method as you decide which debt to pay off first. 

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. Call Your Issuer and Ask for a Lower Rate

The takeaway: A five-minute phone call could save you hundreds.

Most major issuers offer hardship programs that can lower your rate, waive fees or pause payments if you've lost income or hit a medical emergency. According to the Consumer Financial Protection Bureau, you should call your issuer as soon as you know you'll have trouble paying — the earlier you ask, the more options you have.

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. Use a Balance Transfer or Personal Loan To Cut Your Interest Costs

The takeaway: The right consolidation tool can drop your rate to 0%.

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.

You can also consider consolidating your credit card 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. 

Not sure which consolidation option fits your situation? Here's a quick side-by-side.

If you pay in full during the intro period, a 0% intro APR balance transfer card is the most powerful short-term tool for reducing interest costs, but after the intro period the card reverts to a potentially high ongoing APR, so it only works if you have a payoff plan.

8. Set Up Autopay so You Never Miss a Due Date

The takeaway: One late payment can add fees and hurt your credit score.

Autopay can help you avoid missed payments, late fees and added interest while you work to get out of credit card debt. By setting up automated payments for at least the minimum amount due, you reduce the chance of falling behind and damaging your credit because of a missed due date.

If possible, choose an automatic payment amount that fits your payoff plan, whether that is the minimum payment, a fixed amount above the minimum or the full statement balance. Just make sure you keep enough money in your checking account to cover the withdrawal so autopay helps you stay on track instead of creating new banking fees or payment issues.

9. Boost Your Income To Speed Up the Payoff

The takeaway: A side gig turns months of payoff into weeks.

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. Track Your Progress so You Actually Finish

The takeaway: Watching the balance shrink is what keeps you going.

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: How To Pay Off $20,000 in Credit Card 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 should I do if I can only afford the minimum payment right now?

Pay the minimum on every card so you don't get hit with late fees, then look for one small win. Call your issuer and ask for a lower rate or a hardship plan. Cut one bill this month — a streaming service, a subscription, one takeout order — and send that money to your highest-rate card. Even $20 extra a month shortens your payoff by months. If your minimum barely covers the interest, a balance transfer card or a personal loan may be the only way to make real progress. 

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

• Credit card debt: A revolving balance carried on a card, charged interest at the card's APR until paid off.

• Annual percentage rate (APR): The yearly cost of borrowing including interest and fees.

• Debt avalanche: Paying the highest-APR card first to minimize total interest.

• Debt snowball: Paying the smallest balance first to build motivation.

• Balance transfer card: A card with a 0% intro APR that lets you move debt and pay it down interest-free for a set period.

• Debt consolidation loan: A fixed-rate personal loan that combines multiple balances into one payment.

• Hardship program: An issuer program that can lower your rate, waive fees or pause payments during financial difficulty.

• Debt management plan (DMP): A nonprofit-run repayment program that negotiates lower rates and consolidates payments.

Sources

• Federal Reserve: Consumer Credit (G.19) 

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

• CFPB: Dealing with debt 

• CFPB: What is a debt management plan? 

Summary generated by AI, verified by MoneyLion editors

Photo credit: LDProd / iStock.com