It’s common to feel hopeless when making minimum payments on high-interest credit card debt. But don’t worry; there is a way out that will work for anyone, no matter the situation. 

Credit card debt can be overwhelming, but you can set goals to make the process more manageable. Take steps toward paying off your credit card debt. Start by paying off balance transfers, then move on to balances from that original debt. Once you start each repayment plan, figure out what you can reasonably afford to pay and how long it will take you to pay it back.

Getting rid of your credit cards may not sound fun, but getting out of debt is necessary. A common old trick is to put them in a bucket of ice until you’ve paid off everything you owe. Using cash for purchases will make it easier to know the difference between things you need and want. You’ll also spend less and pay more attention to your spending habits.

To start, prioritize and separate the debt into categories. Categories might include: interest rate, the amount owed, and the length of the loan. After that, work on paying off the debt with the highest interest rates and longest terms first. Then use that momentum to establish progress in other areas too. Set up a budget for yourself and follow it, so you are set up for success instead of failure down the line.

If you’re trying to save money and pay off credit card debt, a great place to start is by evaluating your spending habits. For the next two weeks (or even one month), keep track of every penny you spend. This will help you see where your money goes. You might be surprised how much those small expenses add up. Once you understand your spending patterns, look for ways to cut costs. Even making little changes can make a big difference in getting out of debt.

The Avalanche Method is the best way for many people to approach credit card debt. Maximize your payments on the debts with the highest interest rates, making only minimum payments on the debts with the lowest interest rates. You could use this extra money to pay off the debt with the next highest interest rate.

The Snowball Method is a fantastic way to stay on top of your bills and keep more money in your pocket. Instead of allocating equal payments to each bill, you would pay the minimum amount for every bill except the one with the smallest balance. You would allocate as much money as possible for that small bill until you pay it off, then move down the list to tackle larger bills. 

Use your savings to design a way of life for which you won’t need debt. Not only does this reduce what you owe, but it saves you interest in the long run. You’ll thank yourself for being dedicated to using your extra money sensibly.

Refinancing your home can help you pay off debt more quickly or reduce monthly payments. This could give you additional money to pay off debts, make investments, or meet other financial goals. Talk to a professional lender before making that decision. 

Even if you feel overwhelmed by credit card debt, remember there are several ways to pay it off. Determine which method works best for you and create a plan to become debt free.