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Getting out of Credit Card Debt

By Erin El Issa, staff writer at NerdWallet, a personal finance website

Getting out of credit card debt requires making a plan and sticking to it, even if it takes a long time. Steps to take to get out of debt:

  • Stop using your credit card, at least until you’ve cleared your debt and you’re able to pay your balance in full every month.
  • Make a list of your credit card balanced with their interest rates.
  • Choose a payoff plan — either going from smallest balance to largest, or going from highest interest rate to lowest. The first option, known as the snowball method, helps create momentum, but the second saves you the most money.
  • Pay the minimum amount due on each card except the one you’re targeting; apply all extra money to that card. Once you have it paid off, move to the next card on the list and repeat the process.
  • Find extra money to put toward your debt with a combination of increasing your income and reducing your expenses.
  • Consistently pay down your balances until you’ve eradicated them.