How to Get Out of Credit Card Debt

Reviewer: Adam Olson, CFP®, LUTCF, FSCP, RICP
Wealth and Retirement Strategist

Estimated Read Time: ~8 minutes

Summary

• Being proactive about credit card debt can prevent interest from piling up and make dealing with it feel more manageable.
• Choosing a repayment strategy, whether snowball, avalanche or a combination, helps you stay organized and see measurable progress over time.
• Small increases in payments, combined with cutting expenses or boosting income, can help clear the debt sooner and reduce overall costs.

Credit card debt is a problem many American families face. Many families struggle to keep up with minimum payments, leading to a cycle of debt that’s hard to break without a solid plan.

According to Experian data, the average adult with a credit card carries roughly $6,735 in credit card debt¹. There’s often more than one credit card holder in a household, which means even more debt that becomes more expensive over time.

Once you realize the full impact of interest charges, you’ll see why it’s vital to learn how to get rid of credit card debt quickly. Even minor adjustments, such as paying more than the minimum, can make a significant difference. Discover strategies to pay down credit card debt, understanding that the key is to take action and start chipping away at what you owe.

In this article:

• Why you should act quickly on credit card debt
• Choose a repayment strategy
• Reduce interest rates
• Avoid payment-spreading traps
• Increase payment amounts
• Create a budget
• Cut expenses and reallocate money
• Boost income where possible
• Taking control of credit card debt starts with a plan
• Frequently asked questions (FAQs)

Why you should act quickly on credit card debt

It’s easy to fall into the trap of making only minimum payments and thinking you’ll pay more later. The problem is that this can affect your finances and future options.

Adam Olson, a certified financial planner with Mutual of Omaha, said: “Credit card debt isn’t just a math problem; it’s a behavior problem. If spending habits don’t change, no repayment strategy will work long-term. Paying off credit cards requires discipline first, not just better tactics.”

Living debt-free can feel like a distant dream when credit card balances weigh you down, but eliminating debt is key to regaining control over your finances and improving your daily life.

High credit card balances can hurt your credit score, making it harder to get loans and resulting in higher interest rates if you’re approved. Even a single missed payment or a consistently high balance could trigger penalty rates on existing or new cards, adding to the total cost of borrowing.

Want to know how to get out of credit card debt? First, commit to resolving it, and then start taking action. Taking steps to reduce your debt will help improve your credit score as you lower your balances and demonstrate responsible credit usage.

Choose a repayment strategy

Not all debt repayment strategies are equal. Selecting a method that fits your financial situation can make paying off credit card debt less stressful and more realistic. With the right approach, you can regain your financial freedom and live without the constant worry of debt.

Here are a few common approaches:

Snowball method

The snowball method prioritizes paying off your smallest debt first while making minimum payments on others. Once it’s cleared, apply that payment to the next smallest balance and repeat until all debts are gone. The sense of accomplishment as one balance disappears can motivate you to tackle the next one.

Avalanche method

The avalanche method targets the card with the highest interest rate first. Keep making minimum payments on all debts but put any extra funds toward the one with the highest interest rate. After paying it off, roll that amount into the next highest-interest debt and repeat until everything is paid.

Combination method

Some people prefer a mix: paying off small balances for quick wins while also addressing high-interest debt. By managing both fixed and variable costs effectively, you can reduce long-term expenses while staying on track with your payments.

Another way to make repayment easier is to prioritize payments that fit your lifestyle. Some people prefer weekly payments to monthly, while others prefer to tackle a larger chunk whenever they get extra cash.

Whichever method you choose, the key is consistency. Developing a clear plan for paying off credit card debt allows you to monitor your progress and keeps you from becoming overwhelmed by the process.

Olson adds, “No repayment strategy works if new debt keeps being added. Snowball, avalanche, or any combination only succeeds when spending is brought under control and balances stop growing.”

Reduce interest costs

High interest rates are what make credit card debt so expensive. Therefore, finding ways to lower the amount you’re paying can really help. Even small reductions in interest can free up money to put toward the principal.

One approach is to contact your credit card company directly and ask if they can lower the interest rate. Many issuers negotiate if you’ve been a reliable customer or if you can show competing offers from other companies.

You can also focus on paying down the cards with the highest interest first. Putting every dollar toward a high-interest balance saves you more in interest over time than paying the minimum on lower-interest cards.

Maintaining low balances relative to your credit limits is important, as high utilization can lead to higher interest rates or make lenders view you as a higher risk.

Avoid payment-spreading traps

Programs that spread payments over time, like buy now, pay later offers or extended financing, often increase financial stress rather than reduce it. These tools encourage spending without immediate consequences and can quietly strain cash flow. Paying cash for non-essential purchases is one of the most effective ways to prevent credit card debt from recurring.

Increase payment amounts

Paying more than the minimum each month is a vital step in a holistic financial plan to reduce debt and improve financial health. Paying more than your monthly minimum payment can help save you money down the road.

Deciding between paying off debt and saving can be tough, but balancing both is essential for long-term financial security.

Create a budget

Next, create a budget that you can stick to. It may seem like a big task, but the steps are actually easy and will help you stay on track to pay down debt and protect your savings.

Divide your income by your monthly expenses. To do so, figure out what you will need to pay for your bills, grocery trips, any savings accounts and for fun. Even if there’s not a lot of money to go around, creating a plan gives you more control over your spending and helps you see opportunities to pay your credit card debt quickly.

Another benefit? By setting and sticking to a monthly budget, you’ll use your credit card less.

Cut expenses and reallocate money

When you’re trying to work out how to pay off credit card debt fast, it may seem hard or even impossible to pay more than your monthly minimum payment because of other expenses you have.

Olson says, “If you’re carrying credit card debt, discretionary spending has to stop. Subscriptions, takeout, and daily convenience purchases aren’t necessities. They’re choices, and right now, those choices are delaying financial freedom.”

Take a close look at your expenses. You may be able to reduce spending elsewhere to help you pay off your credit card debt.

• Try reducing your cable package or even cancelling your subscription for a less expensive option.
• Make a grocery list, stick to it, use coupons and choose generic over brand names. Try making fewer trips to the store each month and buy non-perishable foods in bulk when you can. Smarter grocery shopping may also help you order less take-out and limit your restaurant and daily coffee shop visits.
• Small changes in your holiday budget, like cutting down on spending, can make a big difference and help you save money, pay down credit card debt and improve your financial health for the year ahead.

Boost income where possible

Increasing your income can make a bigger dent in your credit card debt faster. Even small, extra amounts can add up over time and give you more flexibility with payments.

Look at opportunities to earn a bit more without overcomplicating your life. This could mean working after retirement through part-time roles, short-term freelance gigs or turning hobbies into side income.

Even selling things you no longer need, such as old electronics, clothes or furniture, can provide a one-off boost to help pay down your balances. In some cases, paying off credit card debt faster may require selling larger unused assets. Extra vehicles, recreational equipment, or high-maintenance items can often be converted into immediate progress. Selling something you don’t use is not a setback, it’s a strategic decision to regain control.

Additionally, do you have a skill you can monetize, such as tutoring, writing or offering online services? Then consider dedicating a few hours each week to it.

Every extra dollar can go straight to reducing interest and shrinking your debt faster.

Taking control of credit card debt starts with a plan

Being in credit card debt can feel overwhelming, but these tips can help you move closer to financial freedom by paying it off quickly. The key is to combine small, consistent actions with a clear repayment strategy.

Each step you take, no matter how small, chips away at the balance and saves money on interest over time. Tracking your progress and celebrating small wins helps you stay motivated and avoid slipping back into old habits.

“Credit cards can be useful tools when used responsibly, says Olson. “But they can be financially destructive when misused. If you struggle to control spending on credit cards, the best option may be to stop using them altogether. Cutting up cards and switching to cash or debit isn’t extreme—it’s often the most effective reset.”

You don’t have to tackle this alone. Mutual of Omaha offers planning and advice to help families make informed decisions about debt, money management and much more.

Not sure where to start?

Speak with us today

 

Frequently asked questions (FAQs)

How does debt consolidation work, and in what situations is it beneficial?

If you have more than one credit card and other debts, such as medical bills, a debt consolidation loan could be an option. Debt consolidation loans are loans to pay off several debts with one loan. By consolidating your debt, you may reduce your monthly payments. You may also reduce the amount of interest that you would have paid on these debts separately.

How can I reduce credit card debt with a balance transfer?

A balance transfer helps reduce credit card debt by moving your balance to a new card with a 0% Annual Percentage Rate (APR) for a promotional period. If you stick to the plan, this gives you time to pay off your debt without accruing any additional interest, but be aware of transfer fees and avoid using the old card to prevent more debt. Olson cautions that they may not be for everyone and says, “Balance transfers and 0% interest offers are not a solution for most people. They often create a false sense of progress while reinforcing the same spending habits that caused the debt. If the balance isn’t aggressively paid down before the promotional period ends, the debt frequently becomes more expensive than before.”

What is the 15/3 credit card payment trick?

The 15/3 trick is a simple method to reduce interest and pay off your credit card faster. It means making one payment 15 days before the due date and another 3 days before, splitting your balance roughly in half each time². By doing this, you lower your average daily balance, which can reduce the interest you’re charged and help shrink your debt more quickly.

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Reviewer: Adam Olson, CFP®, LUTCF, FSCP, RICP

Wealth and Retirement Strategist

Adam is a Certified Financial Planner, author and podcast host with a deep passion for helping clients navigate all aspects of personal finance, from financial planning and investment management to life and health insurance. His goal is to empower individuals and families with the knowledge and tools they need to make confident financial decisions. He resides in Norfolk, Nebraska with his wife, Katie, where they are raising their four boys.

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Sources:

1. Experian, Average Credit Card Debt by Age in 2025, September 2025
2. Forbes, Can The 15/3 Credit Card Hack Save You Money? – Forbes Advisor, November 2024

Disclosures:

Registered Representatives offer securities through Mutual of Omaha Investor Services, Inc., Member FINRA/SIPC. Investment Advisor Representatives offer advisory services through Mutual of Omaha Investor Services, Inc.

Mutual of Omaha and its representatives do not provide tax and/or legal advice, and the information provided herein is general in nature and should not be considered tax and/or legal advice.

Not all Mutual of Omaha agents are registered representatives or financial advisors.

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