6 Ways to Start Paying More Than the Minimum on Your Credit Cards

It's widely recommended to pay more than the minimum on credit cards, and for good reason. If you're only making minimum payments, it takes an extremely long time to pay off credit card debt.

To give you an example, let's say your credit card has a $5,000 balance and a 20% interest rate. If you only pay the minimum, it will take you 277 months (over 23 years) to pay off your debt. You'll also pay $7,723 in interest, meaning that debt ends up costing you $12,723 total.

But people who pay the minimum usually aren't doing it because they don't know any better. It's often because that's seemingly all they can afford to pay. If you feel as if you can only make minimum payments on your credit cards, here are the best ways to free up money and pay more.

1. Pay your credit card right when you receive your paycheck

A common piece of advice that helps with saving money is to pay yourself first. Instead of waiting until the end of the month to put money in your savings account, do it right after you get your paycheck. If you wait, it's easy to overspend and end up with nothing left over later. If you do it immediately, you force yourself to save.

The same strategy works just as well with paying your credit cards. Instead of waiting until your payment is due, pay as much as you can right when you get your paycheck.

2. Focus on increasing your income

Increasing your income is one of the biggest financial improvements you can make. Finding ways to cut spending is great, and we'll go over some options for that as well, but it only goes so far. That's especially true if you're already on a tight budget.

A higher salary makes it much easier to pay down your credit cards. Here are a few options to consider that could help you earn more:

• Pick up more hours at work.
• Apply for a promotion or ask for a raise.
• See if there are any side hustles or freelance opportunities that fit your skillset.

3. Stop going out for food and drinks

Dining is an area where a lot of people overspend. In fact, 30% of consumers spend an average of $180 per week at restaurants. That's over $9,000 per year, more than enough to pay off the typical adult's credit card balance.

Even if you're not spending that much on dinners and drinks, try cutting these from your budget for the time being. You may be surprised how much money it frees up and how much faster you can pay down your credit cards.

4. Start doing no-spend weeks

You could also take your spending cuts a step further and add no-spend weeks to your regular routine. A no-spend week is exactly what it sounds like. You don't spend any money on nonessentials. Use all the money you save that week for your credit card payment.

The more frequently you do this, the more extra money you'll have. Doing it week in and week out probably won't be feasible, and it definitely wouldn't be enjoyable. But one or two no-spend weeks per month is a good goal that can make a big difference.

5. Use an app

Many personal finance apps are designed to help you manage money better, save on bills, or get out of debt. Here are a few of the best types of apps that could speed up your progress on your credit cards:

• Debt payoff apps offer payment plans, automated payments, and tools to help free up more money in your budget.
• Budgeting apps connect to your financial accounts and help you better track your spending.
• Coupon apps allow you to get discounts and cash back at the stores where you shop.

6. Redeem your rewards toward your credit card bill

If you have a rewards credit card, remember that you may be able to use your rewards as a statement credit on your bill. This option is available with cash back credit cards, so if you have one of those, use any cash back you've earned to lower your card's balance.

Many travel credit cards also give you the option of redeeming your points this way. The drawback is that you normally get less value per point than you would if you redeemed them for travel. But if you're in credit card debt, paying that off should be the priority, even if it means not quite getting the maximum value for your points.

When you're making minimum payments on credit card debt, progress is slow. Your best bet is to see what you can do to start paying more so you can get out of debt more quickly.