Best Way to Pay Off Credit Card Debt

Look for ways to save money, and apply your savings to your debt.
i Jupiterimages/Creatas/Getty Images

You may have been somewhat reckless when it came to using your credit cards during college. You might have gone just a tad overboard with your wedding accoutrements. Whatever you did to accumulate your credit card debt, make a plan, stick to it, and your credit card debt will be gone in no time.

Step 1

List your credit cards, and write down how much you owe on each one and how much the interest rate is on each card.

Step 2

Stop using your credit cards. If you want to pay off your credit card debt, you won’t be able to if you are accumulating new debt.

Step 3

Pick a method. The two ways most financial advisors suggest to get out of credit card debt are the snowball method or the avalanche approach. With the snowball method, you start small by paying off the smallest credit card debt first. That gets the ball rolling as you move on to paying off the next biggest debt amount. Keep doing this, and you will have the strength to tackle your monster card. The avalanche approach tackles the high-interest rate cards first.

Step 4

Trim your daily expenses to give you more money to pay toward your debt. The $10 a day approach is one way to make bigger payments on your credit cards. Think of ways you can save just $10 a day. Maybe you can bring your lunch to work or forgo the coffee of the day at your favorite coffee house. Start using coupons for purchases. If you try, you’ll probably be able to put away some extra cash every day to apply to your monthly credit card bill.

the nest