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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: Sergey Mironov/Getty Images March 16, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Mariah Ackary is a personal finance editor who joined the Bankrate team in 2019, excited by the opportunity to help people make good financial decisions. Send your questions to Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Many Americans struggle with credit card debt. The average credit card balance is $5,525, according to Experian’s 2021 . And though that national average has decreased since 2019, the COVID-19 pandemic has strained some wallets more than others. Eliminating your balance could take some time, but a combination of smart money moves can reduce your debt, lower your interest rates and begin your journey toward a debt-free life. Here are some of the best ways to get (and stay) out of credit card debt. Understanding credit card debt
Credit card debt is a type of high-interest revolving debt, meaning consumers can continue to borrow each month up to a certain limit. Debt can be a useful safety net during an unexpected financial emergency. But if used irresponsibly, credit card debt can lead to a dangerous spiral of overspending and interest. You can avoid the pitfalls of credit cards in a few key ways. Making on-time payments each month can help you build your credit score, while avoiding the late payment fees and interest hikes that can turn your debt from manageable to overwhelming. You’ll also want to keep yourself accountable for your financial goals by sticking to a budget. Avoid making credit card purchases you know you can’t pay off in full at the end of the month. In other words, use a credit card like a debit card. Lastly, don’t wait for an emergency to happen. According to Bankrate’s February 2022 poll, . Building an emergency fund will help cushion the financial blow when life inevitably throws you for a loop. Even if you know these best practices, credit card debt can sometimes creep up on you. If you already have debt, there are a few tried-and-true ways to tackle it. 5 steps to pay off credit card debt
Here are a few of the best ways to get out of the red. 1 Find a payment strategy or two
Making on-time, complete payments every month will help you avoid potential late payment fees and interest rate hikes that can make your debt even more unmanageable. Aside from the basics, you should come up with a specific plan of attack. Two common debt repayment strategies are the and methods. 2 Consider debt consolidation
into a single monthly payment can simplify the situation, making it easier to stay on top of payments. And if you can secure a lower interest rate, you can reduce the total amount you pay over time. 3 Negotiate with your creditors
If you’re experiencing unusual financial hardship, you might be able to . They might offer you a lower monthly payment, a decreased interest rate or a forbearance program that can make it easier for you to pay down your balance. 4 Seek third party help
Your creditor may also be able to recommend credit counseling firms or other debt management resources to help you get back on track. As a last resort, a could negotiate with creditors and collections agencies to reduce and consolidate your debts. Debt settlement can negatively impact your credit score, so be sure you’ve assessed the pros and cons first. 5 Open a balance transfer credit card
If a high interest rate is keeping you stuck in debt, a could help you get ahead. These credit cards allow you to transfer debt from one or more credit cards to a single card. They often offer an introductory zero percent APR period—meaning you can have up to 21 months of no interest while you work on paying down your balance. FAQs about paying off credit card debt
Here are a few more answers to your burning questions about wiping out your credit card debt. How will paying off my credit card affect my credit score
Once your balance is at zero, you might notice a change in your credit score. Credit utilization is the second most heavily-weighted factor in credit scores. Paying down your balance will lower your overall credit utilization and boost your score. How long after I pay off my credit card will it reflect on my credit score
Lenders usually report account activity at the end of the billing cycle, so it could take anywhere from 30-45 days for you to see a change in your score. How much credit card debt can I consolidate
There isn’t a limit on how much debt you can consolidate, but there are situations where it makes more sense to do so, depending on how much you owe and the terms of your potential new loan. If you’re considering consolidating your debt, speak to your credit card issuer(s) before you decide. Find out how long it will take you to pay off your debts at their current interest rate and compare that to the potential new loan. The bottom line
The best debt repayment strategy varies by individual. Some may use the debt snowball method to organize and pay off their debts. Others may benefit from a balance transfer credit card. If your debt is overwhelming, you might want to consider hardship programs, credit counseling or other types of credit card debt help. Want more information about how to reduce credit card debt? Visit Bankrate’s . You’ll learn about payoff strategies, debt relief options and other tools to help you manage your debt and work toward a debt-free life. SHARE: Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Mariah Ackary is a personal finance editor who joined the Bankrate team in 2019, excited by the opportunity to help people make good financial decisions. Send your questions to Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Related Articles