What Is the Best Way to Pay Off Credit Card Debt?

The best way to pay off credit card debt is to stop adding new charges, make at least the minimum payment on every card, then put all extra money toward one card at a time (usually the one with the highest interest rate to save the most money).

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Step 1: List Your Debts (Takes 5 Minutes)

Write down for each card:

• Balance

• Interest rate

• Minimum payment

This shows you exactly what you are dealing with.

Step 2: Pick One Repayment Method

You have two common options:

• Highest interest first (Avalanche): Pay extra on the card with the highest interest rate first. This usually saves you the most interest.

• Smallest balance first (Snowball): Pay extra on the smallest balance first so you get quick wins and stay motivated.

Both work. The “best” one is the one you will actually stick with.

Step 3: Always Pay the Minimum on Every Card

If you cannot pay a card off yet, make at least the minimum payment so you avoid late payment problems and extra costs.

Then take any extra money and focus it on your “target” card (your avalanche or snowball card).

Step 4: Put Every Extra Dollar Toward the Target Card

Once the target card is paid off:

• Move that payment amount to the next card

• Repeat until you are done

This is how the plan speeds up over time.

Step 5: Lower the Cost If You Can

If your interest rate is high, contact your creditor and ask what they can do. They may offer options like:

• A lower interest rate

• Smaller minimum payments (over a longer period)

• Debt consolidation into one loan

Even a small rate drop can make payoff faster.