5 Tips for Paying Off $10,000 or More in Credit Card Debt

When you have $10,000 or more in credit card debt, it's a serious financial issue. The average interest rate is currently 21.51%, according to Federal Reserve data. So with that kind of balance, you'll be racking up about $2,151 per year in interest charges.

It's possible to pay off this much credit card debt if you have a good repayment plan. Keep reading for all the tips you need to get your credit cards down to $0.

1. Get control of your spending first

To make progress on your debt, you'll need to spend less than you earn. Start by checking that your income is more than your monthly expenses, including your credit card payments.

Next, see where you can cut back. You should definitely do this if you're spending more than you earn. But even if you're not, it's still a good idea to look for expenses you can reduce. Here are a few areas to look at:

• Subscriptions: Cancel as many of them as possible, at least for the time being.
• Groceries: Many Americans don't keep close track of their food spending, so this is often an easy place to cut back.
• Going out: Put dinners, drinks, and other activities on hold while you work on getting out of debt.

2. Stop using your credit cards

When you're in debt, it doesn't make sense to keep adding to your credit card balances. You'll have more to pay back, and you're already being charged high interest rates. If you use your credit cards, that's just additional debt that will probably cost you 20% or more.

Leave your credit cards somewhere safe at home and pay for everything with a debit card or cash. You'll save money on interest this way, and you won't be adding to your debt. You'll also only be able to spend money you have in your bank account.

3. Cash in any credit card rewards you have

Check your accounts for any rewards you can redeem toward your credit card balances. With cash back cards, this is easy. Those cards normally let you apply your cash back as a statement credit toward your credit card bill. If you have $50 in cash back, that's $50 taken off your credit card debt.

You should also do this if you have travel cards. Now, I realize that travel points are usually worth less if you redeem them for cash back. But in this situation, it doesn't matter. When you have $10,000 or more in credit card debt, paying that off is more important than getting the most value from your points. You can always earn more points later.

4. Look for opportunities to earn more money

The key factor in paying off credit card debt is your payment amount. The more you pay, the faster you'll be out of debt, and the less total interest you'll end up paying.

One of the best ways to speed up the process is finding ways to earn more. You could see if there are opportunities for overtime at work. Or you could pick up a side hustle on the weekend, such as driving for ride-hailing companies. Put all your extra income toward your credit card debt, and you'll pay it off much more quickly.

5. Consider a balance transfer card or debt consolidation loan

There are a couple of financial products that can help with paying off large amounts of debt.

• Balance transfer credit cards: These credit cards have a 0% intro APR on balance transfers, with some offering intro periods of 18 months or longer. You could transfer over your balances and pay down your debt interest-free for the intro period.
• Debt consolidation loans: These personal loans allow you to pay off your debt in fixed monthly payments. Personal loans also tend to have lower interest rates than credit cards.

You'll be more likely to qualify for a balance transfer card or debt consolidation loan if you have good credit -- a credit score of 670 or higher. Either of these options could save you a lot of money on interest charges as you pay down your debt.

Credit card debt feels overwhelming, but it's not insurmountable. To give you an example, let's say you have $10,000 in credit card debt charging you 21% APR. If you're able to put $500 per month toward it, you'll have that debt paid off in 25 months.

And if you raise your income or get a balance transfer card, you could do it even sooner. Put as much as you can toward your credit cards, and you'll eventually be debt-free.