Trustpilot Trophy
America's #1 Debt Relief Company
Get a free debt consultation
1-800-983-6693

Credit card debt can be a huge burden on one’s financial life. It can feel impossible to climb out from under the weight of credit card bills. But it doesn’t have to stay that way forever! We have five ways you could quickly and easily begin decreasing your credit card debt without too much hassle.

Five Ways To Resolve Credit Card Debt

There are many ways you can help resolve your credit card debt, but here are a few ideas that can get you started on your journey to debt-free living.

Pay Off High-Interest Cards First

Interest can account for a large portion of your credit card debt, making it best to pay off cards with the highest rates first. This can stop you from accumulating even more credit card debt (due to interest fees) and allow you to tackle your debts one by one in an organized manner that makes sense for your financial situation. This is also sometimes called the “avalanche method” and you can read more about it in this article.

Pay More than Your Monthly Minimum Payment

Credit card companies make sure to emphasize  monthly minimum payments. However, just making this payment will not get rid of your credit card debt. In fact, your debt could increase due to interest charges on the unpaid portion. If you pay more than the minimum sum due (when possible) it could help you make more progress against the principal debt amount faster. Added benefit? This could also help you become debt-free, faster.

Create a Budget and Stick to It

Knowing where your money is going is one of the best ways to avoid accumulating debt in the first place. Use a budget so you can keep track of your income and expenses. If you notice that there are certain things that are not necessary, such as brand-name clothes or dining out too much, then it would be best if you reduce or cut them from your monthly spending plan until you have paid off your debts.

Use the Debt Snowball Effect

The snowball effect relies on consistency and momentum to achieve success. With this method, you will pay off your smallest balance first. Then, you will use the amount you were paying toward the smaller balance and add it to the payment of your next smallest debt. You should continue doing this until all of your debts are paid in full. The benefit of this method is that it can be psychologically motivating to watch your debts be knocked out one by one, allowing you to gain momentum and more confidence to keep going.

Work with a Debt Settlement Company

If you feel like you have too much debt to be able to pay back, a debt settlement company might be able to help. Debt settlement companies are dedicated to helping people who find themselves in large amounts of credit card debt by negotiating with their creditors for a reduction in their outstanding debt. So, not only could this help you become debt-free for less—lower balances could also help you become debt-free faster! Sound interesting? Read more about how debt settlement can strengthen your finances in this article.

Why Is it Important to Get Out of Debt?

Having a significant amount of debt can cause a variety of problems, such as preventing you from being able to buy your first house or even finding employment in some situations. It’s best to resolve credit card debt as soon as possible so it doesn’t prevent you from achieving financial and personal goals.

Why Do People Accumulate Credit Card Debt?

Falling into credit card debt can happen to anyone, but there are some reasons why people accumulate debt. One common reason is they do not understand their budget or spending habits and end up overspending on a regular basis. It can be difficult for someone who has never managed money before to quickly learn how much they should spend each month based on their income level and bills that need to be paid off. 

Another reason is that people often do not pay off their credit card balance each month—instead allowing their balances to continue growing and interest fees to accumulate. In these situations, they can end up paying more in interest than the amount they originally charged on the plastic.

How Many People Struggle with Credit Card Debt?

A survey from CreditCards.com found that 47% of adults have some form of credit card debt. This means that if you’re struggling with credit card debt, you’re not alone.

Common Questions About Getting Rid of Credit Card Debt:

What Is A Good Credit Card APR?

The best way to identify if the APR on your credit card is good or not is to check the average credit card APR and compare it with what your credit card is offering. Currently, the national average is around 16%. Not sure what your interest rate is? Read more in this article on how to find the interest rate for your credit cards.

Is Debt Settlement A Good Option?

Debt settlement can be a great option for getting rid of credit card debt because it involves negotiations with creditors to reduce what you’re required to pay back—meaning, you could become debt-free faster and for less. Debt settlement companies specialize in these types of negotiations and could help you get out of debt by using their expertise and leverage to negotiate with your creditors to settle your debt for a reduced amount.

How Can I Improve My Credit Score?

One of the easiest ways to improve your credit score is to pay your bills on time. Credit history plays an important role in your overall credit score so the more positive history you are able to show, the better. Read about more strategies for achieving a good credit score in this article.