Credit card interest rates are among the highest of any consumer debt — often 20% to 29% APR. Carrying a balance at those rates is expensive. Here is a practical plan for getting out.
Before you can build a plan, you need a complete picture. List every credit card you have, its current balance, its APR, and its current minimum payment. If you are unsure of a rate or minimum, log into your card's online portal or call the number on the back of the card.
Write it down or put it in a spreadsheet. Seeing the full picture in one place — even if the total is uncomfortable — is the necessary starting point. Many people are surprised to find they have more accounts, higher balances or higher rates than they had estimated.
Credit card minimum payments are typically calculated as a percentage of the balance (commonly 1% to 2% of the balance plus interest, or a flat minimum of $25 to $35 — whichever is greater). They are designed to keep you paying for as long as possible, not to help you get out of debt efficiently.
On a $4,000 balance at 22% APR, paying only the minimum could take 15 to 20 years to pay off and cost as much as the original balance in interest alone. Paying $150 per month instead of the minimum of around $60 would pay it off in under three years and save thousands in interest.
Illustrative figures for comparison. Actual amounts depend on your specific card terms and minimum payment calculation method.
Paying down a credit card while continuing to charge new purchases to it is like bailing out a boat without fixing the leak. While in payoff mode, the goal is to stop using high-interest credit for purchases you cannot immediately pay off.
This may require building a small cash buffer for unexpected expenses — otherwise emergencies land on a card and undo progress. Even $500 in a separate savings account provides enough cushion to handle minor surprises without resorting to credit.
Pay minimums on all cards. Then direct as much extra as you can toward one targeted card. Two main approaches:
Even an extra $50 per month above minimums makes a meaningful difference on high-interest debt. Look for freed-up money from subscriptions you have canceled, reduced takeout spending, or a side hustle.
If you have good credit, a balance transfer to a card with a 0% promotional APR period (typically 12 to 21 months) could allow you to pay down principal without additional interest accumulating during that window. This can be effective for people who are disciplined and can clear a significant portion of the balance before the promotional rate expires.
What to watch for: balance transfer fees of 3% to 5% upfront; the standard APR (often 20%+) that applies to any remaining balance after the promotional period; and the temptation to use the newly freed-up space on the original card. Read the terms carefully before transferring.
This is general information only and not a recommendation. Evaluate your specific situation carefully.
The time to pay off credit card debt varies significantly based on balance, rate and monthly payment. A general illustration for a $5,000 balance at 22% APR:
Illustrative estimates only. Actual figures depend on your specific balance, APR and minimum payment terms.
Our debt pressure guide could help you map your cards, compare payoff strategies and see the impact of different payment amounts. General guidance only — not financial advice.
Try the debt pressure guide