How to Pay Off Credit Card Debt in 2025: 5 Strategies to Try

Credit card debt is falling.

Balances in the U.S. fell to $1.18 trillion in the first quarter of 2025, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data^[0]

If you want to be one of those people reducing their debt, explore these options.

How to get out of credit card debt

1. Stay on top of payments

Pay more than minimums on your credit card bills

Credit card issuers give you a monthly minimum payment, often around 2% of the balance. In the fourth quarter of 2024, the percentage of cardholders making only the minimum payment hit a 12-year high, at 11.12%^[0]

Remember: Banks make money off the interest they charge each billing period, so the longer it takes you to pay, the more money they make, and the more you end up paying.

Look on your credit card bill for a “Minimum Payment Warning,” which will have a table showing how long it would take to pay off your balance if you paid only minimums — and how much interest you'd pay.

Take the debt snowball approach

The debt snowball method of paying down your debt uses your sense of accomplishment as motivation.

You organize your debts by amount, then focus on wiping out the smallest one first, while paying minimums on the rest. When you’ve paid off that debt, you roll that payment into the amount you’re paying toward the next-smallest debt, and so on.

Like a snowball rolling down a hill, you’ll gradually make bigger and bigger payments, ultimately eliminating your debt.

Use the debt avalanche method

Similar to the snowball approach, the debt avalanche method starts with listing your debts. But instead of paying off your credit card with the lowest balance first, you pay off the card with the highest interest rate. It can be a faster, and cheaper, method than the snowball method.

Automate your credit card payments

Automating your payments is an easy way to make sure your debts are being paid so you avoid racking up additional costs in late fees. If you’re neurodiverse and struggle with forgetfulness or procrastination, automating your payments can be especially helpful.

If you’re practicing a debt snowball or debt avalanche approach, however, you will have to be a little more hands-on to make sure you’re contributing exactly what you want to each account. Before you automate your payments, make sure that you have a steady enough cash flow to avoid overdraft charges.

2. Work with your creditor card issuers

Reach out to your creditors to explain your situation. A credit card issuer may be willing to negotiate payment terms or offer a hardship program, especially if you’re a longtime customer with a good track record of payments.

Hardship programs may provide relief when circumstances beyond your control, such as unemployment or illness, affect your ability to manage payments. Even if you aren’t experiencing unemployment or illness, the cost of living can cause hardship for many people.

Whether you negotiate with your issuer, or accept the terms of a hardship program, either option could lead to more affordable interest rates or waived fees, depending on the issuer.

These small changes might be just enough to help you get a handle on your debt, and the worst that can happen is they say no.

3. Explore debt consolidation

If your payments feel overwhelming, consider consolidating your credit card debts into one account, ideally with a lower interest rate. That way, you only have to make one payment each month to chip away at the balance. It’s easier to get approved, or get a low rate, if you have good credit.

Look into 0% balance transfer credit cards

It might seem counterintuitive to apply for a credit card when your main goal is to get out of credit card debt, but 0% balance transfer cards can help save you money in the long run. Find a card that offers a long 0% introductory period — preferably 15 to 18 months — and transfer some or all of your outstanding credit card debt to that one account.

You'll have one simple payment each month, and you won’t pay interest as long as you pay the balance before the introductory period ends.

» COMPARE: The best 0% balance transfer cards

Consider a personal loan

Similarly, you can take out a fixed-rate debt consolidation loan to pay off your debt. While you will have to pay interest, interest rates for personal loans tend to be lower than for credit cards, which may still help you save some extra cash. Use our calculator below to decide if debt consolidation would save you money. estimate your savings.

» COMPARE: The best debt consolidation loans

4. Seek help through debt relief

If you’re really struggling to get your debt under control, it may be time to take some more serious steps. Consider debt relief options, such as bankruptcy or a debt management plan.

Think about a debt management plan

Debt management plans are created with the help of a credit counseling agency. Counselors negotiate new terms with your creditors and consolidate your credit card debt. You’ll pay the counseling agency a fixed rate each month. Your credit accounts may be closed, and you may have to forgo new ones for a period of time.

Consider filing for bankruptcy

Filing for Chapter 7 bankruptcy wipes out unsecured debt such as credit cards, while Chapter 13 bankruptcy lets you restructure debts into a payment plan over three to five years and may be best if you have assets you want to retain.

Bankruptcy can stay on your credit report for seven to 10 years, though your credit score is likely to bounce back in the months after filing. It’s also possible to use bankruptcy to erase student loan debt and older tax debt, but can be difficult.

» MORE: Chapter 7 vs. Chapter 13 bankruptcy

Weigh the risks of debt settlement

Under debt settlement, a creditor agrees to accept less than the amount you owe. Typically, you hire a debt settlement company to negotiate with creditors on your behalf. This option can be expensive and it isn’t guaranteed to work. Read more on how debt settlement works, and the risks you face.

5. Lower your living expenses to accelerate repayment

While you are taking some or all of these steps to pay off your credit card debt, it’s beneficial to look for ways to lower your bills and other living expenses. Doing so may help you free up more money to put toward eliminating your existing credit card debt and keep you from taking on more debt.

Some ways to lower your living expenses include: