Credit card debt is the most expensive debt most people carry — average APRs are 22%+. At that rate, a $10,000 balance with minimum payments takes over 20 years to pay off. Here's how to escape faster.
Step 1: Stop Adding New Debt
You can't get out of a hole while digging. Put the cards away — not in your wallet. Switch to debit or cash for daily spending while you pay down balances.
Step 2: Know Your Numbers
For each card, write down: balance, APR, and minimum payment. This is your starting line. Most people avoid this step because it's uncomfortable — do it anyway.
Step 3: Pay More Than the Minimum
Minimum payments are designed to keep you in debt. On a $5,000 balance at 22% APR, the minimum might be $150/month — but that pays off almost no principal. Adding even $50–$100/month can cut years off.
Step 4: Pick a Strategy
Two proven methods:
- Avalanche: Pay extra on the highest-APR card first. Saves the most money.
- Snowball: Pay extra on the smallest balance first. Best for motivation.
Both work. Pick the one you'll stick with.
Step 5: Consider a Balance Transfer or Consolidation
A 0% APR balance transfer card (if you qualify) gives you 12–18 months interest-free to attack the principal. A personal loan at 10% is cheaper than a card at 22%. Both only help if you stop using the cards.
See how fast you can pay off your debt — and how much interest you save — with the Debt Payoff Calculator.