How to Get Out of Credit Card Debt in 7 Steps

Right now, we’re all coping with inflation, higher-priced goods, expensive groceries, and economic uncertainty. So it’s no wonder that thousands of people are grappling with credit card debt. If that’s you, you’re not alone, even though it can feel isolating and scary to look at your credit card statements each month. 

We know that most credit card debt comes from paying for unexpected expenses or living paycheck to paycheck, not from booking fun vacations or shopping sprees. Still, debt can cause significant stress. If you want to get out of credit card debt, there is hope. In this article, we share several tips on how to get out of credit card debt and put it behind you. 

Table of Contents

1. 1. Reevaluate your lifestyle
2. 2. Build a budget for paying off debt
3. 3. Choose a debt payoff method
4. 4. Evaluate consolidation options
5. 5. Earn more and apply windfalls
6. 6. Say no to extras
7. 7. Enlist help from professionals 

1. Reevaluate your lifestyle

One of the most challenging aspects of being in credit card debt is having to reevaluate why it happened in the first place. Most people don’t plan to get into credit card debt. It usually happens because of an emergency or paying for daily expenses. A recent Debt.com survey showed that 37% of people reported that inflation caused them to use credit cards for essentials.

If you can relate, start shifting your focus and bringing more awareness to your daily spending. This might include reviewing your past month’s expenses. When you do this, take note of the times you ordered food, the cost of your kids’ activities, and your current subscriptions. Look for places you can cut for a period of time until you pay off your debt.

Once you’ve identified small lifestyle changes you can make, take the time to consider bigger ones too. The bigger your changes, the faster you can get out of credit card debt. Bigger changes might include switching to a more affordable car, downsizing your home, or taking your kids out of private school. These aren’t necessary, but sometimes, big steps can help.

Read More:

If you’re struggling with credit card debt, you aren’t alone. Our 2025 Personal Finance Survey found 40.1% of respondents can’t cover a sudden $1,000 emergency in cash. Of those respondents, 34% said they would turn to credit cards. Paying off debt is also the primary goal for 39% of respondents. Read more about the survey findings here.

2. Build a budget for paying off debt

If you’ve tried to budget before and it hasn’t worked, you’re not alone. The Federal Reserve Bank of New York reported that credit card balances increased by $45 billion as of the fourth quarter of 2024. One trick that can help you succeed is to view your budget as a spending plan rather than something that restricts your fun.

What is a budget?

A budget is a list of your expenses each month. If you find that you’re living paycheck to paycheck or your credit card debt is growing, usually the clue to improve it is inside your budget. You can use a spreadsheet or a budgeting app to create one. What you do is list out your income and then subtract your monthly expenses.

Your income includes any money you receive from your job, investment income, rental income, child support, or alimony. Your expenses are everything you pay for each month, including your mortgage, rent, utilities, car payment, credit card minimums, insurance payments, child care costs, everyday shopping, and groceries.

How to adjust your budget

Your budget can give you clues on areas to cut back. For example, when you evaluate your spending, you might notice that you spend consistently on Amazon or have a few subscriptions you never use. Delete those expenses on your budget and reallocate them to debt payoff to help you reach your goals faster.

Credit card debt can take a serious toll both financially and emotionally. When left unaddressed, it may lead to anxiety and depression, draining the mental energy needed not only to enjoy life but also to stay focused on paying off the debt.

Significant debt and missed payments can limit job opportunities, make it harder to secure a loan or rent a home, and create obstacles to achieving other important financial and personal goals.

3. Choose a debt payoff method

Once you’ve reevaluated your spending and built a budget, the next step is to choose a debt payoff strategy. The two main strategies people use to pay off debt quickly are the debt snowball and the debt avalanche. 

With the debt snowball, you pay off debt from your smallest balance to your largest balance. With the debt avalanche, you pay off your debt from the highest interest rate to the lowest interest rate. 

Snowball vs. avalanche example

Here is an example of the differences between paying off $10,000 worth of credit card debt using the snowball or avalanche method. You can use a debt reduction calculator to enter your credit card details and decide which method is best for you.

• Credit Card A: $1,500 balance, 14.99% rate, $100 minimum payment
• Credit Card B: $3,000 balance, 18.99% rate, $100 minimum payment
• Credit Card C: $5,500 balance, 22.99% rate, $100 minimum payment

• Total balance: $10,000, $300 total minimum payments

Payment method	Snowball method	Avalanche method
Order of debt payoff	Smallest balance to largest balance (Card A, then Card B, then Card C)	Highest rate to lowest rate (Card C, then Card B, then Card A)
Total interest paid	$2,551.47	$2,355.32
Benefits	Psychological motivation and early wins	Saving money on interest
Best for	People who need to get early motivation to stick with the journey	People who are more numbers-driven and prefer to see mathematical wins

As you can see, you’d pay less in interest with the debt avalanche in this scenario—but if you’re more likely to stick with your payoff plan after the earlier wins of paying off your lower balances in full, the debt snowball might be best for you.

Read More:

Best Debt Payoff Apps

4. Evaluate consolidation options

Another step that can help you pay off credit card debt is to consolidate your debt. While this won’t reduce the amount of debt you have, it can streamline your payments and lower your interest rates. Here are a few ways you can consolidate credit card debt. There are pros and cons to these debt consolidation options, so consider them carefully:

• Personal loan: With a personal loan, you can get a loan with a set interest rate and fixed payment, and use those funds to pay off high-interest credit cards. (See our team’s picks for the best personal loans.)
• Balance transfer offer: If you have good credit, you can apply for a balance transfer credit card. These come with fees, but you can often move your debt to a 0% credit card for a set period of time, like 12 months, allowing your payments to go directly to the principal.
• HELOC or home equity loan: If you’re a homeowner with significant equity in your home, you can take out a loan or a line of credit against your equity and use it to pay down your credit card balances. The downside is that if you miss payments, your lender can foreclose on your home. (Check out our resources on the best HELOCs and the best home equity loans.)

5. Earn more and apply windfalls

When you’re sprinting to pay off credit card debt, another strategy is to earn more and use any windfalls you earn, like bonuses at work, to pay down debt faster. The World Economic Forum reports that in 2024, the market share for the gig economy was $556.7 billion. That creates many opportunities to earn extra money and use it to pay down debt faster.

Some ideas for earning extra money include selling items around your house, flipping furniture on Facebook Marketplace, driving for Uber or Lyft, or completing food delivery runs. You can also use skills you already have, like graphic design, writing, or video editing, to complete work for businesses online. 

While life might get busy for a while if you take on extra work, it doesn’t need to be permanent. Once you pay off your credit card debt, you can stop the extra side gigs and breathe easier knowing your debt is gone.

Read More:

6 Best Books for Getting Out of Debt

6. Say no to extras

Part of being successful when paying off credit card debt is saying no to things you want to say yes to. That might mean when your friends invite you out to dinner, you instead offer to host a potluck at your house. It might mean that when your extended family goes on a cruise and wants you to join, you say you’ll join them next time. 

Remember, you don’t need to say no to extras forever. It’s a small sacrifice for a short time until you reach your payoff goal. You might find that some people will support your goals and cheer you on, while others will be upset when you turn down invitations. However, you’ll never regret staying focused on improving your finances. The reward is worth it.

Keep in mind that if you restrict yourself too much and never do anything fun, it can be easy to fall back into old habits. So make sure to allow yourself small treats every now and then, but say no to big extras, like trips or expensive birthday parties, so you can redirect the funds to pay off your debt faster.

Overcoming credit card debt requires discipline, thoughtful planning, and, when needed, professional guidance. I worked with a couple who had accumulated $65,000 in credit card debt. After reviewing their options, they chose to consolidate their balances into a single loan, streamlining their payments and enabling them to focus on just one monthly obligation.

They also cut back on spending and made the intentional decision to downsize to one vehicle. Within five years (excluding their mortgage), they became debt-free, saved thousands in interest, and significantly improved their credit scores. This allowed them to refinance their home at a lower interest rate, begin maxing out their employer-sponsored retirement plans, and build a six-month emergency fund.

Ultimately, they gained peace of mind and experienced a shift in mindset—one that helped them refocus on what truly matters in their lives.

7. Enlist help from professionals 

If you find that you need extra support in your debt payoff journey, you can get help from professionals. That might mean working with a money coach or financial advisor who can be your accountability partner through your debt payoff journey. 

Another option is to work with a debt relief company. Debt relief companies negotiate with creditors on your behalf, offering them settlements if you’re significantly behind on paying your credit card bills. 

National Debt Relief is the top-rated company we’ve reviewed, and it specializes in helping clients settle credit card debt. While this can help you get out of credit card debt, working with debt relief companies usually comes with fees and can damage your credit score.

Our advice is to first try to negotiate as much as possible on your own by calling your credit card companies and asking whether they have debt settlement options. If you can’t get results on your own or you’d prefer accountability and support, seek help from professionals.