Have Over $25,000 in Credit Card Debt? Here's How to Pay It Off

Paying back credit card debt is a lot harder as it gets larger. If your total credit card balances are $25,000 or higher, they'll go up by hundreds of dollars every month because of interest. And it could cost you $500 or more just to make minimum payments.

We've outlined the steps for a good debt repayment strategy to speed up the process and help you save on interest.

Start by negotiating your credit card interest rates

Many consumers don't realize you can do this, but it is possible to negotiate a lower interest rate with your credit card companies. All you need to do is call the number on the back of your card and ask. It will help your cause if you've always paid on time.

Even though you may not be successful with every card you have, any deal you get from a card issuer could save you hundreds or even thousands of dollars in credit card interest as you pay off your balances.

Pay off credit card debt with balance transfers

The most cost-effective way to pay off credit card debt is with balance transfers. Here are the steps to follow:

1. Apply for a balance transfer credit card.
2. Transfer as many credit card balances as you can to the new balance transfer card. Start with the ones that have the highest interest rates.
3. Pay as much as you can toward your balance transfer card every month until it's paid off.
4. Apply for another balance transfer card and repeat the process.

Compare expert picks for the best balance transfer cards

Now, let's look at how balance transfers work in more detail

First, you need a balance transfer card. This type of credit card offers a 0% intro APR on balance transfers. That means you can pay zero interest for the entire introductory period. These cards almost always charge a balance transfer fee, but it's a small price to pay considering how much you'll save on interest.

Check out the best balance transfer cards to find one that works for you. There are two things to look for here:

• The length of the 0% intro APR: A longer introductory period gives you more time to pay off balances you transfer.
• The credit card issuer: Most card issuers don't let you transfer balances from one of their cards to another. For example, if you have balances on Chase credit cards, don't choose a balance transfer card from Chase, because you won't be able to bring over those balances.

You probably won't be able to transfer all your credit card debt onto your balance transfer card. The amount you transfer, including fees, can't exceed the card's credit limit, and some cards also have their own separate balance transfer limits. That's why you'll start by transferring your highest-interest credit card debt.

Next, you need to pay off your balance transfer card as quickly as possible. Only make minimum payments on your other credit cards, and put every cent you can toward your balance transfer card.

Once you've paid off the balance transfer card in full, you can apply for a new one.

By following this method, you'll continually refinance your highest-interest credit card balances at a 0% intro APR. This will maximize how much you save and how quickly you're able to pay off your debt.

What if you can't qualify for a balance transfer card?

Although balance transfers work well for credit card debt, they aren't right for everyone. Like most of the best credit cards, the top balance transfer cards are typically only available for consumers with good to excellent credit. If your credit score isn't at least near 670, you could have trouble qualifying.

Debt consolidation loans are another option, and many lenders offer loans for borrowers who don't have high credit. You could get a loan large enough to cover all or a portion of your debt and use that loan to pay off your credit cards. Then, you'd pay back your loan in fixed installments and ideally at a lower interest rate than you had before.

You'll need to find a lender with minimum requirements you can meet, but there are plenty of personal loan lenders available to fit many people's income and credit score. If you don't have a high credit score, here are a few lenders that focus on borrowers with poor to fair credit:

• Upstart
• Avant
• Lending Point

Going from deep in debt to debt free

Make no mistake about it -- there's no magic bullet to wipe out over $25,000 in credit card debt. Even with balance transfer cards, you'll need to be diligent about paying as much as you can every month, and the process could still take years.

But this method does help you in a few key ways:

• It dramatically cuts down how much interest you'll need to pay.
• It gives you a clear target to pay off each time you get a balance transfer card.
• It allows you to chip away at your debt and see the progress you're making as you pay off one balance transfer card after another.

If you can stick with it, this is the smartest way to pay off a large amount of credit card debt.

Still have questions?

Some other questions we've answered:

• What can I do to get out of my credit card debt?
• How can I pay off my credit card fast?
• How much debt is too much debt?