{"id":3542,"date":"2025-05-12T06:00:00","date_gmt":"2025-05-12T13:00:00","guid":{"rendered":"https:\/\/qa.simplifimoney.com\/blog\/?p=3542"},"modified":"2025-05-13T12:51:09","modified_gmt":"2025-05-13T19:51:09","slug":"how-to-get-out-of-credit-card-debt","status":"publish","type":"post","link":"https:\/\/www.quicken.com\/blog\/how-to-get-out-of-credit-card-debt\/","title":{"rendered":"How to Get Out of Credit Card Debt"},"content":{"rendered":"\n

Did you know that Americans are carrying $1.142 trillion in credit card debt<\/a>? That’s a tough rock to get out from under. But by formulating a plan with tried-and-true strategies and sticking with it, you can lower your credit card balance, improve your credit score, and ultimately dig yourself out of debt.<\/p>\n\n\n\n

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See how Quicken helps you get out of debt.
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The number one reason to get out of credit card debt<\/strong><\/h2>\n\n\n\n

Purchasing goods and services with a credit card is certainly convenient \u2014 especially in this day and age. Stores offer their own credit cards with specific cardholder perks, and you can even earn cash back or receive discounts to buy something you really want. However, high interest rates can spell disaster \u2014 if you don\u2019t pay your balance off in a timely fashion, you can accrue some serious interest payments.<\/p>\n\n\n\n

Interest is essentially what you\u2019ll pay the credit card company for fronting you the money. You can think of your credit card as a loan, to which you\u2019ll owe the principal balance plus the percentage of interest agreed upon during signup.<\/p>\n\n\n\n

By getting out of credit card debt, you can stop paying interest on the balance you owe. Did you know that if you continued to pay a minimum monthly payment of $1,000 on a $20,000 loan at, say, 29.99%, it would take you over two years to clear that debt \u2014 with a hefty $8,066.78 going into your lender\u2019s pocket?<\/p>\n\n\n\n

We\u2019ll take a look at the same loan again with the same terms \u2014 but this time, we\u2019ve been graced with a 5% APR. It would take you 1.7 years to pay off the debt, but this time only $926 toward interest.<\/p>\n\n\n\n

The bottom line? Get out of credit card debt to stop paying interest!<\/p>\n\n\n\n

How to get out of credit card debt<\/strong><\/h2>\n\n\n\n

So, are you ready to stop paying interest to your lenders, improve your credit score, and make your credit card debt a thing of the past? With some perseverance, patience, and these tips below, you can start to ease your way out of credit card debt.<\/p>\n\n\n\n

Organize your credit card debt<\/strong><\/h3>\n\n\n\n

Open a spreadsheet and start by entering every open line of credit you have \u2014 these can be big-box retailer store credit cards, cards from traditional lending or banking institutions, and cards from credit unions. List each account, line by line, and include your outstanding balance, minimum payment, APR percentage, and the payment due date.<\/p>\n\n\n\n

Pick a debt pay-down strategy<\/strong><\/h3>\n\n\n\n

Seeing your balances and due dates all in one place can be scary \u2014 don\u2019t worry. Rome wasn\u2019t built in a day, and your credit card balances won\u2019t be paid overnight, either. There are a few pay-down strategies that you can use to keep you on track and begin chipping away at your repayment.<\/p>\n\n\n\n

Debt snowball method<\/strong><\/h4>\n\n\n\n

The debt snowball method<\/a> entails finding your smallest debt and paying that first. Take a look at your list of credit cards and find the account with the lowest balance. Next, continue with your minimum monthly payments as normal, but instead of making the minimum payment on your lowest, you\u2019ll pay as much as you can afford \u2014 this is where budgeting comes in handy.<\/p>\n\n\n\n

Once you pay off your first outstanding balance, you\u2019ll continue rolling over the payments on the next smallest debt \u2014 this is how you create a \u201csnowball\u201d and start paying down your credit cards. The advantage to the debt snowball method is that you\u2019ll get a quick win paying off your lowest balance, in turn keeping you motivated to continue!<\/p>\n\n\n\n

Debt avalanche method<\/strong><\/h4>\n\n\n\n

The debt snowball method is the polar opposite (ha, see what we did there?) of the debt avalanche method, in which you take on your highest interest rates first. Go back to your handy spreadsheet, where you will need to identify your credit card with the highest APR percent. The rest follows the same as the debt snowball \u2014 pay your minimums across the board, but allocate as much as you possibly can for your balance with the highest interest rate.<\/p>\n\n\n\n

The debt avalanche is great because it immediately helps alleviate the strain of high interest. As your balance decreases, your accrued interest per month will decrease, and you\u2019ll ultimately reach the payoff point.<\/p>\n\n\n\n

If you use the debt avalanche method, please remember to be patient and to stick with it \u2014 you won\u2019t pay off your credit card debt overnight, but you will save exponentially on interest!<\/p>\n\n\n\n

Using the 50-30-20 rule<\/strong><\/h4>\n\n\n\n

While not solely a debt paydown strategy, the 50-30-20 budgeting method can be extremely helpful in credit card repayment and lowering your balances. The figures refer to the allocation of your income after tax \u2014 50% goes toward needs, 30% toward wants, and 20% toward debt repayment.<\/p>\n\n\n\n

The 50-30-20 can definitely help you pay back your outstanding balance, but it takes discipline. It\u2019s very important to be real with yourself and be realistic about your ability to commit 20% of your income toward debt repayment. If you\u2019ve historically been less-than-discerning about your discretionary spending, maybe this particular method isn\u2019t best for you.<\/p>\n\n\n\n

Explore debt consolidation<\/strong><\/h3>\n\n\n\n

Debt consolidation can offer relief if you\u2019re carrying multiple balances with high interest rates. One option you may consider is a balance transfer credit card, which will allow you to transfer your balance to a singular card with an introductory 0% APR for a limited time.<\/p>\n\n\n\n

This option may not be the best for those with very high balances, and they will generally come with a hard inquiry \u2014 this can affect your credit score.<\/p>\n\n\n\n

You may also qualify for a debt consolidation loan, which is a type of personal loan meant for debt repayment. These loans will generally have a fixed interest rate, but it will be at a lower percentage than your credit card interest.<\/p>\n\n\n\n

By using a debt consolidation loan, you can pay off your credit card debt \u2014 but make sure you don\u2019t start using the available credit!<\/p>\n\n\n\n

Stick to your plan<\/strong><\/h3>\n\n\n\n

Let\u2019s be frank, a great credit card repayment plan is not helpful if it\u2019s not consistently followed. If you\u2019re serious about getting out of credit card debt, you need to make sure you stick to your plan. Above all, it\u2019s important to be honest with yourself, commit to your plan 100%, and look toward the future optimistically. It can seem impossible, but it\u2019s not. You can do it!<\/p>\n\n\n\n

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See how Quicken helps you stick to your financial plan.
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Tips to stay on track<\/strong><\/h2>\n\n\n\n

So, you\u2019ve got your plan fully formulated, and you\u2019re ready to build your credit score and stop paying interest? Here are a few more tips to help you cross that finish line and step into debt-free living.<\/p>\n\n\n\n

Audit bills and subscriptions<\/strong><\/h3>\n\n\n\n

Do you use your partner\u2019s Netflix login? Maybe you have an old GQ subscription that somehow finds its way into your recycling every month? Take a look at what you\u2019re spending on bills and subscriptions \u2014 streaming services, magazines and newspapers, and apps can all be set for auto-pay, and we don\u2019t even notice the transactions!<\/p>\n\n\n\n

By using an app like Quicken Simplifi<\/a>, you can see when your bills and subscriptions are due, how much they\u2019re costing you, and decide if they\u2019re worth keeping \u2014 you can get rid of ones you aren\u2019t using and snowball that balance into debt repayment.<\/p>\n\n\n\n

Put on your chef hat<\/strong><\/h3>\n\n\n\n

After a long day, cooking can seem like the least desirable prospect possible \u2014 GrubHub, DoorDash, and Uber Eats only require you to get off the couch. While the extra effort into cooking at home can seem like a reach when you\u2019re already tired, it saves so <\/em>much money. With surcharges related to gas price increases, tips, and delivery fees, you\u2019re really throwing money out the window.<\/p>\n\n\n\n

It\u2019s a nice treat to splurge on for an occasional indulgence, but you can eat cheaper (and healthier!) by donning the apron and channeling your inner Gordon in your own kitchen. Who knows, maybe you\u2019ll find your new passion?<\/p>\n\n\n\n

Create a budget<\/strong><\/h3>\n\n\n\n

As we discussed above, creating a budget and adhering to it is paramount. By monitoring your after-tax income, your bills and financial obligations, and your savings goals, you can stick to a system that works for you and not spend outside your means.<\/p>\n\n\n\n

Consider using Quicken Simplifi<\/a> to organize and view your finances \u2014 it can monitor your balances across bank accounts and credit cards, alert you to upcoming bills, help you set a budget, and even monitor investments.<\/p>\n\n\n\n

Automate your payments<\/strong><\/h3>\n\n\n\n

Do you find yourself forgetting to make your payments on your outstanding balances? Sometimes these missed payments can even result in late fees \u2014 just one more avenue by which your money leaves your account! Consider automating your payments, which can help you to ensure you always pay your bills on time. Certain institutions can even offer perks for signing up for automatic payments \u2014 take a look and see what options your lenders have made available to you.<\/p>\n\n\n\n

Only spend what you have<\/strong><\/h3>\n\n\n\n

Above all, you need to ensure that you\u2019re only spending money you actually have! Try to stick to spending with your debit card or out of your checking account. By avoiding putting a balance on your credit accounts, you can safeguard yourself from running up your balance again.<\/p>\n\n\n\n

Make credit card debt a thing of the past<\/strong><\/h2>\n\n\n\n

Credit card debt is no joke \u2014 it can follow you around for years, causing you to shell out tons of hard-earned cash toward interest rates that can feel insurmountable. If you\u2019re feeling the strain of outstanding credit card balances and a suffering credit score, use the tips above as a game plan to pay your way out.<\/p>\n\n\n\n

Trust the process, be patient with yourself, and stick to your strategy, and you can work your way to financial freedom, rebuild your credit score, and stop shelling out interest to your lenders.<\/p>\n\n\n\n

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See how Quicken helps you improve your credit.
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You can lower your credit card balance, improve your credit score, and ultimately dig yourself out of debt.<\/p>\n","protected":false},"author":59,"featured_media":3544,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"109","_seopress_titles_title":"How to Get Out of Credit Card Debt | Quicken","_seopress_titles_desc":"You can lower your credit card balance, improve your credit score, and ultimately dig yourself out of debt.","_seopress_robots_index":"","inline_featured_image":false,"footnotes":""},"categories":[109],"tags":[],"class_list":["post-3542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-debt"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.quicken.com\/blog\/wp-content\/uploads\/2022\/09\/couple-holding-credit-card-with-laptop.jpg","_links":{"self":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/3542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/comments?post=3542"}],"version-history":[{"count":6,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/3542\/revisions"}],"predecessor-version":[{"id":8756,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/posts\/3542\/revisions\/8756"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media\/3544"}],"wp:attachment":[{"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/media?parent=3542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/categories?post=3542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quicken.com\/blog\/wp-json\/wp\/v2\/tags?post=3542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}