Carrying credit card debt can feel like a heavy burden. I’ve been there, telling myself month after month that things will get better, only to fall back into the same cycle. If this sounds familiar, you’re not alone. In this guide, I’ll walk you through actionable steps to help you tackle credit card debt—steps you can start implementing today.

Why Act Now?

Credit card interest rates are at an all-time high, meaning more of your hard-earned money is going towards interest. Let’s put this into perspective with a little math:

1. The High Cost of Interest: If you owe $20,000 at 20% interest and pay $400 a month, it will take about 109 months (9 years) to pay it off, with half of your payments going to interest.

2. Lowering Interest Rates Makes a Difference: Reducing your rate by just 1% could save you $4,000 in interest and cut 9 months off your repayment time.

Now that we see how significant these changes can be, let’s get to work on reducing your debt.

Use this credit card payoff calculator to figure out your repayment timeline.

Step 1: List All Your Credit Card Debt

Start by getting a clear picture of what you owe. Use a spreadsheet or pen and paper to list:

• Credit card name

• Balance

• Minimum payment

• Interest rate

• Annual fee

Seeing these numbers may feel overwhelming, but take a deep breath—it’s possible to pay down debt with focused action. Tools like the free debt trackers from Vertex42 can help you organize this information.

Step 2: Call Your Credit Card Companies

Contact your credit card issuers and ask for two things:

1. Downgrade to No-Fee Cards:

If your card has an annual fee, request a downgrade to a no-fee version. You’ll likely receive a prorated credit for the unused portion of your fee, which will automatically lower your balance.

2. Request a Lower Interest Rate:

If you have good credit, ask for a rate reduction. Even a small decrease can significantly impact your repayment timeline and interest savings. It doesn’t hurt to ask. If they cannot do anything on the first call, try again 3 to 6 months from now. During that time, you will work to improve your credit score so you are eligible for more favorable rates.

Our goal for the first few steps is to create some margin by lowering the balance or reducing the interest rate. The big challenge with credit cards is that interest accumulates daily. The higher the balance and the higher the rate, the more interest will be charged, making it difficult to pay down.

Step 3: Redeem Rewards for Statement Credits

If your cards have rewards like points, miles, or cashback, redeem them for statement credits. While saving these for a vacation is tempting, using them to reduce your balance will save you much more in interest. Let’s also be real with ourselves that if we are in credit card debt, going on vacation is not going to be a priority at this point.

Step 4: Eliminate Recurring Charges

Stop adding new charges to your credit cards. Review your statements for subscriptions and convenience services, such as:

• Streaming platforms

• Food delivery services

• Amazon Prime

• Monthly subscription boxes

• Gym memberships

Cancel anything non-essential. At this time, the goal is to tighten the belt to free up cash to pay down your balances.

Step 5: Cut Up and Remove Credit Cards

To prevent impulse purchases, cut up your cards and remove them from Apple Wallet, Google Pay, and online browsers. While this step may feel drastic, it’s an essential part of breaking the credit card cycle.

Without a credit card to rely on, you will start getting intentional with where you go and what you buy. If you have been relying on credit cards to get you through the month, the next few steps will provide you some cash on hand to use.

Step 6: Return Unused Items

Look around your home for items you’ve never used or still have tags on them. Return them for a refund to your credit card. We often buy out of impulse. Whether that’s Amazon purchases that are still in their boxes or clothes bought on sale with tags still on them, we need to clearly assess if these items are necessary. By returning them, you automatically reduce your credit card balances as those refund credits get applied.

Step 7: Sell Unused Items

Declutter and sell items you no longer need. Once you get the cash, keep a portion so that you aren’t dipping into your credit card for essential purchases. For anything extra, send that right away to make extra payments on your debt. Remember, interest compounds daily, so every little bit helps.

Step 8: Shop for Balance Transfer Offers

A balance transfer can help you consolidate debt at a lower interest rate. A balance transfer does involve getting another credit card to pay off another credit card. It is an option, but you will note it is a later step in this guide because I don’t want us to think this is a solution for getting out of credit card debt. If we are not careful, we can put ourselves in a balance transfer loop which results in an endless cycle of credit card debt. Look for offers with a 0% introductory rate for 12–18 months, and read the fine print carefully to avoid hidden fees or penalties.

Step 9: Embrace a Lifestyle Change

Getting out of credit card debt is hard, but it is also harder to stay out of debt. We need to adopt habits that promote financial health:

• Create a budget and assign every dollar a job.

• Say “no” to unnecessary expenses.

• Limit social media use to avoid the temptation of impulsive spending or feelings of comparison which might lead to spending.

• Build a support network of like-minded individuals who are working toward debt freedom.

Step 10: Boost Your Income

Once you’ve adjusted your spending habits, look for ways to increase your income:

• Ask for a raise.

• Pick up a side hustle.

• Look for higher-paying job opportunities.

Use any extra income to accelerate your debt payoff. Keep in mind as your income increases that you also be diligent with keeping your expenses low. Lifestyle inflation is very common and its how most people end up in a cycle of credit card debt so have a plan for your extra income the minute it is earned.

Step 11: Prioritize Payments with a Strategy

Choose a debt repayment method that works for you:

• Snowball Method: Focus on paying off the smallest balances first to gain momentum.

• Avalanche Method: Tackle the highest-interest debts first to save the most money.

Final Thoughts

Paying off credit card debt isn’t easy, but with determination and a step-by-step plan, it’s achievable. Take action today, and remember that small changes can lead to big results. If you’ve successfully paid off debt before, share your tips in the comments below to inspire others!

Stay focused—you’ve got this!