10 Steps to Getting Out of Credit Card Debt

Credit card debt is one of the worst types of debt you can have because the high interest rates cause your balance to balloon quickly. What might start out as a balance of a few hundred dollars can quickly become several thousand dollars if you're not making any effort to pay it off.

It's a stressful situation, to be sure, but it's not a hopeless one. Try these 10 tips to kiss credit card debt goodbye forever.

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As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

The first step is always the same, no matter how much debt you have or how many cards you're carrying a balance on. You need to know where you're at. Make a list of all your credit cards that have a balance and note how much you owe, the card's APR, and your minimum payment. You'll use this to help you craft a debt repayment plan.

There are a few different ways you can tackle credit card debt. If you don't want to open a new credit card or take out a loan, you can choose either the avalanche or the snowball debt repayment method. Both require you to make the minimum payment on all of your credit cards. Then, you choose one card to put all of your extra cash toward every month.

In the debt avalanche method, you choose the credit card with the highest APR first and then move onto the next-highest APR card once the first is paid off. In the debt snowball method, you choose the card with the smallest balance first before moving onto the second-smallest balance. The debt snowball method can make you feel like you're making progress more quickly, but the debt avalanche method is the way to go if you want to pay the least overall.

You need to reduce the money you have going out every month so you can free up as much cash as possible for debt repayment. Eliminate any discretionary purchases and comb through your bank and credit card statements for the last year to check for any recurring payments you may have forgotten about.

Create a budget for yourself to ensure you don't overspend going forward. Come up with some type of system for recording your expenses so you can keep track of where you're at. This could be simple pen and paper or you may prefer to use an app or a spreadsheet. If after a couple of months with your new budget you identify areas where you could reduce spending even further, do so and put the extra toward your credit card debt.

A side hustle generates extra income you can put toward paying off your debt. There are a lot of options out there today, so it shouldn't be too difficult to find one that aligns with your skills and interests. There are even options you can do from home, like virtual assisting or helping someone create a website, if you're worried about the pandemic.

Remember to set aside some of your side hustle income for taxes or you could wind up with tax debt next. You also have to be aware of any potential costs associated with your side hustle. For example, rideshare drivers will have extra wear and tear on their vehicles and possibly higher insurance costs.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

Another way to get some fast cash is to sell items you no longer use. This could be old clothing, unwanted furniture, or anything else you don't really need anymore. There are plenty of online marketplaces you can use to sell your items to those in your area or around the country, and then you can apply all of this extra cash toward your credit card debt.

Paying off credit card debt is difficult if you're constantly adding to it by charging new purchases to your card every month. Try switching to cash or a debit card for your essential purchases so you don't have to worry about accumulating more debt.

If you do have to charge a purchase to a credit card, be strategic about which one you use. Choose the card with the lowest APR or choose a credit card you don't have a balance on already. And make sure you pay it off in full at the end of the month so you don't have to worry about interest.

You may be able to get your credit card issuer to lower your APR if you just call and ask. This slows the rate at which your balance accrues interest, making it easier to pay off your debt.

Credit card issuers don't have to change your interest rate, but they're in a competitive business, so they may if they're worried about losing you to another issuer. Call the company and explain why you think you deserve a lower rate. Highlight your loyalty as a customer and your good payment history if you've always paid on time. You can also mention the lower APRs some competing cards offer and threaten to close your account and transfer your balance if your issuer doesn't lower your rate. It might not work, but it's definitely worth a try.

If you're not having any luck paying down your debt on your current cards, consider opening a balance transfer credit card. These cards offer a 0% introductory APR for a period of time, usually ranging from six to 21 months. Your balance won't accrue interest during this time, so every payment you make goes toward paying down your existing debt.

In order to take advantage of a balance transfer card's perks, you usually need to open a new card with a card issuer you're not already working with. You'll likely also pay a small fee for doing the balance transfer, which will make your new balance slightly larger than your old one. Keep that in mind when deciding if this is the right option for you.

A personal loan is an alternative to a balance transfer card if you want a regular, monthly payment. You don't need any type of collateral to take out one of these loans, but that makes their interest rates a little higher than some other types of loans, especially for those with poor credit. However, if you're already contending with high credit card debt, you're probably used to high interest rates.

You'll have to shop around to see which personal loan provider offers you the best deal. Then apply and pay any associated fees. Once you do that, your lender will give you a lump sum, which you can use to pay off your credit card debt. You'll then have a monthly payment that's guaranteed not to change over time, which many people find easier to deal with than credit card debt.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

Unless you fall into a large sum of money, you're probably not going to get rid of your credit card debt overnight. Accepting that it will take time is key to keeping yourself on track. It might help to record your progress over time so you can see that what you're doing is working. If you try one of the strategies mentioned above and it's not giving you the results you want, consider a different approach but don't give up. Getting rid of your credit card debt will make your life a lot easier, so it's definitely worth pursuing.