The Federal Reserve said that credit card debt for Americans stood at $18.04 trillion in the fourth quarter of 2024.

According to WalletHub, the average credit card balance is $11,303 per household and 46% of Americans don’t have a debt payoff plan.

It may feel impossible to recover if you are deep in debt, but it can be done.

Setup Automated Payments

Late fees and interest charges are like throwing money away. Setup automated payments to pay at least the minimum on your monthly balance, increase the amount a little at a time. Throw as much money as you can at the debt. When the payments are automated you will not forget to make your payment or incur late fees. Late fees not only add to your mounting debt but they have a negative impact on your credit score.

Find Ways to Limit Spending

Look closely at your spending, there are probably expenses you can cut back on or eliminate to save money. These can be everyday things like dining out, travel, entertainment or finding a less expensive cell phone or TV plan. Setup a budget so you know exactly where your money is going.

Use the Snowball Method

The snowball method tackles your smallest debt first, pay off the card with the smallest balance first and make only minimum payments on the rest. Once the first card is paid off, devote that same amount to paying off the next smallest card.

High-Interest Rate Method

The high-interest rate method pays off the card with the highest interest rate first. This method saves money by lowering your total interest payments. It also eliminates your debt faster.

Pay More Than the Minimum

When you make only the minimum payment each month you will avoid late fees and penalty APRs, but you will still carry a balance on your card, and it could take years to chip away at the balance. The balance accumulates interest, which adds up quickly and makes it harder to pay off your card. Try to pay more than the minimum balance each month to eliminate your debt more quickly.

Stop Using Your Credit Cards

While you are actively paying off debt stop using your credit cards, if you are not using the cards, you will not continue to accumulate debt. You can setup online bill pay at your bank to pay your bills. When you pay with cash you never incur late fees or interest charges. Paying with cash can also prevent overspending and impulse shopping since you have a clear understanding of how much you are spending.

Use Extra Money

Use any extra money you receive like a pay raise, bonus or tax refund to pay down the debt.

Use a Balance Transfer

Find a credit card that is offering a 0% introductory APR period with no balance transfer fee or a transfer fee with a very small percentage. Many cards offer promotional periods ranging from 12 to 21 months, during this time you won’t pay interest on transferred balances, this allows you to make payments directly toward the principal. Work to pay off the full balance during this time, once the promotional period ends you will pay the standard interest rate.

Negotiate a Lower Rate

Call your credit card company and ask for a lower interest rate. Many creditors are willing to work with customers who are actively trying to pay down their debt. You may be able to negotiate a much lower rate or even a temporary 0% rate.