How to Deal with Credit Card Debt: Step-by-Step

1. List Your Debts
   Write down each card, balance, interest rate, and minimum payment—seeing the full picture is the first step.
2. Pause New Spending
   Put away your cards while you work your plan to avoid making balances bigger.
3. Pick a Payoff Method
   Try the avalanche (highest rate first) or snowball (smallest balance first) method to focus your payments.
4. Pay More Than the Minimum
   Anything extra you pay knocks down your balance and saves you on interest.
5. Call Your Card Issuer
   Ask if they’ll lower your interest rate—it works more often than you’d think.
6. Consider Consolidation
   Balance transfers or consolidation loans can help, but watch for fees and terms.
7. Get Professional Help if Needed
   If you’re overwhelmed, nonprofit credit counselors can help you review your options and find the right solution.

What to Expect When Tackling Credit Card Debt

• Small Steps Add Up: Even small extra payments make a big impact over time.
• Your Score May Dip at First: Paying down debt and lowering utilization helps in the long run—even if your score moves around a bit at first.
• Progress Feels Slow, Then Picks Up: The hardest part is getting started—momentum builds as balances shrink.
• Help Is Available: Many people use nonprofit support or debt management plans—there’s no shame in asking for guidance.
• Relief from Stress: Taking action and seeing progress, even if it’s gradual, is a huge stress reliever.

Pro Tips & Common Mistakes to Avoid

• Don’t close cards too soon: Paid-off accounts can help your score if you keep them open (unless there are annual fees).
• Don’t pay one card with another: Balance transfers can help, but only with a plan—avoid racking up more debt.
• Avoid payday loans: These often lead to deeper debt and much higher costs.
• Watch for scams: Be cautious of companies promising “quick fixes” or charging upfront fees.
• Track your progress: Use a spreadsheet or app to stay motivated and celebrate each win.

A Typical Debt Payoff Journey

Feeling overwhelmed by credit card balances is more common than you might think. Here’s how Ryan, a working parent, faced his debt head-on—and what he learned along the way:

Ryan’s story: After several years of using credit cards for emergencies and everyday expenses, Ryan found himself owing over $8,000 across four cards, each with a different interest rate. The minimum payments barely made a dent, and the stress was starting to impact his sleep and family life.

He decided to write out each balance, interest rate, and due date, seeing the real totals for the first time. Instead of panicking, Ryan picked the avalanche method—focusing on the highest-interest card while still making minimum payments on the others.

When an unexpected car repair set him back, Ryan felt frustrated but didn’t give up. He called his card company, asked for a lower rate (and got it on one card), and reached out to a nonprofit counselor for advice. They helped him set up a clearer budget and reassured him that progress, not perfection, was the goal.

The result? After 20 months of steady effort, Ryan paid off the last card. His credit score improved, but more importantly, his stress levels dropped and he felt in control again.

Frequently Asked Questions

Need More Support?

If credit card debt feels overwhelming or you’re not sure where to start, our nonprofit counselors are here to help. Get a free, confidential review of your options.