How to Pay Off Credit Cards Fast

Credit card interest is expensive, so every month a balance sits there costs you money. The good news is that a few practical steps can shorten the time it takes to get to zero.

Pay more than the minimum

The minimum payment is set low on purpose. Most of it can go to interest, so the balance falls very slowly and the debt can last for years. Even a small amount above the minimum helps, because every extra dollar goes straight to the balance and reduces the interest charged next month.

• Pick a fixed extra amount you can keep up every month.
• Pay on or before the due date to avoid late fees.
• If you have several cards, pay the minimum on all of them and send the extra to one. Our snowball vs avalanche guide explains how to choose that card.

Consider a balance transfer

A balance transfer card moves your debt to a new card, often with a low or zero interest rate for an introductory period. That can let more of each payment reduce what you owe. Read the terms first:

• Most transfers charge a fee, commonly a few percent of the amount moved.
• The low rate ends after the promotional period, and the standard rate can be high.
• Some offers charge deferred interest, which means interest back to day one if you do not pay the balance in time.

A transfer only helps if you stop adding new charges and have a realistic plan to pay it off before the offer ends.

Ask for a lower interest rate

You can call your card issuer and ask for a lower rate. It does not always work, but it costs nothing to try. A history of on-time payments helps your case. If you are struggling, ask whether the issuer offers a hardship program, or contact a nonprofit credit counseling agency for free or low-cost guidance.

Use a payoff calculator

A plan feels easier when you can see the finish line. A payoff calculator shows your debt-free date, how much interest you will pay, and how a little extra each month changes both. Try a few different payment amounts and pick one you can sustain.

Stop adding to the balance

Paying down a card while still charging to it is like bailing out a boat with a hole in it. If you can, set the cards aside and use cash or a debit card for everyday spending until the balance is gone. Put any windfall, such as a tax refund or bonus, toward the debt as well.

This article is general information, not financial advice. Offers, fees and rates vary by lender, so check the terms that apply to you.