5 Tips to Help You Pay Off Credit Card Debt the Right Way

Having a new outlook on life can really change things up for a person, and if you have started off the New Year with the goal of bettering your life, you may also want to start thinking about ways to pay off credit card debt to make your year even better. It isn’t as daunting a task as you might think, if you know the tips and tricks of some of the best money managers in the country. Here’s what they recommend:

Build up to it

This one is really simple – you pay off your smallest debt first, and then work your way up to larger debts. By doing this, you can help out your credit, limit your number of debtors, and keep yourself motivated to paying off things. This method works well for everyone and can have a huge impact on your finances in a short amount of time.

Pay a percentage

Each time you get paid, take a percentage out of your check and pay down a debt. Start with the smallest debt, as listed above, and work your way up. Even if you live pay check to pay check, do this. It will help you pay off debts and show you that maybe you don’t need to spend $30 a week on coffee and convenient store snacks. If you can, do a larger percentage.

Do a zero budget

Make out your weekly budget and then have it equal zero. For example, if you make $400 a week, your expenses should be $400 a week. Have a week where you only pay $300 in bills? Then $100 can go to a payoff of one of those bills. The sooner you make a zero-based budget part of your strategy to pay off credit card debt, the sooner you’ll start to see your debt go down and more money in your pockets.

Pay on high interest rates

Let’s say your lowest credit card balance is $300 and your most expensive is $1,500. Obviously, you pay off the $300 fast, but in doing so you may be ignoring that 10 percent interest rate on the $1,500 balance. OUCH! That’s $150 a month! Instead, pay a little on that higher balance (enough to at least cover the interest rate) so you don’t add debt as you pay it off.

Dip in to your savings

What’s the point of all that savings if you are drowning in debt? If you can, use your savings to pay off debt, and then rebuild the savings with more room to breathe. You’ll be more focused, feel better, and you won’t have interest rates raising your debt even higher. Keep at least $2,000 in the savings, though, in case of emergency.

For many Americans, carrying a balance on a credit card is a way of life. They routinely charge more than they can afford to pay off in a month, or even a year. So, stop creating new debt! Before you start to pay off credit card debt, you must make a commitment to not charge any more expenses.

Do you have any tips to help pay off credit card debt? Tell us about them in the comments.

About Catherine

Catherine is a self-proclaimed "organization junkie" living in Los Angeles. She blogs about family, entertainment, food and anything else that pops into her mind.


  1. Nicole Dz says

    These are great pointers and tips for those who are struggling to pay down debt, helpful posy for sure with useful info.

  2. Great tips! We used our tax return to pay off our last credit card. It’s been so nice not to have that hanging over our heads.

  3. Credit card debt is so painful on the soul! Great tips but most importantly, once out of debt, maintain it that way!

  4. Great tips! I luck out that we are able to pay off our balances each month.

  5. Robin (Masshole Mommy) says

    Great tips. I don’t have any credit cards, so I am thankful for that :)

  6. Great tips! I try to pay off the balance in full each month. Once that balance builds it can be so hard to get it paid off.

  7. Deanna Ritz says

    Great tips on how to get rid of debt. One of the smartest things you can do financially is to get rid of debt. I wish it just wasn’t so hard to do… We are working at it though and don’t have too much further to go. :)

  8. Lois Alter Mark says

    Great tips. We always pay in full every month because the whole idea of credit card debt stresses me out.

  9. Great and useful tips. Takes time and consistency.

  10. Giveaways 4 Mom says

    These are good tips. Luckily, I keep credit card debt down. Student loans, however, are another story.

  11. These are some great tips, tips I wish I had years ago! Good reminder to pay on higher interest rates!

  12. Great tips. We have one credit card that we are trying to pay down so this is very helpful.

  13. My husband pays them off at the end of the month thankfully. We do use them so that we can get the rewards.

  14. My biggest tip? STOP SPENDING. so many people in debt still go out to eat a lot!

  15. Great tips for those who need to get their finances in order!

  16. Those are some great tips. I have a few credit cards that I do need to pay off but I’m almost done. Should have started this a long time ago.

  17. I haven’t opened a credit card but these are great tips!

  18. I found that paying off the lower ones got me so excited to keep going!

  19. I do not have any credit cards and I never will. They don’t make sense to me.

  20. Ann Bacciaglia says

    Great tips. I am working on paying off a few things. It takes time but it feels good when the debt is gone!

  21. All things we’ve done to help ours! We’re finally seeing the light at the end of the tunnel.

  22. These are all great tips, I don’t have a credit card. Never had one

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