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5 Ways to Pay off Credit Card Debt

Dena Standley | April 23, 2024

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Managing credit card debt can be tough, but strategies like debt consolidation, new payment plans, debt settlement, credit counseling, and snowball or avalanche payment methods can help. SoloSettle offers a tech-based solution, negotiating directly with creditors to settle debts of any size.

US consumers owe $1.13 trillion in credit card debt. That’s a whole lot of money.

Having a credit card can be hugely beneficial if managed properly, but when debt begins to stack up and spiral out of control, it can become a vicious cycle that may seem impossible to escape. You may pay higher interest than any other form of debt or have multiple credit card entries on your credit report.

Planning to pay off your debt can occur in stages. You devise a plan to pay a certain amount within a short period, or you pay it off at once using another loan with better terms. In this article, we answer a common question among consumers: “How do I pay off credit card debt fast?”

Here are five great ways to pay off your credit card debt and regain your financial freedom.

5 Ways to Pay off Credit Card Debt

1. Consider debt consolidation

Debt consolidation is an efficient way of managing debt. It involves combining several debts with high-interest rates into one debt with better payment terms. This method lessens the stress of making payments to multiple accounts, and you can now focus on making one monthly payment. You can consolidate your debt using the following two methods.

Getting a 0% balance transfer credit card

It sounds counterproductive to get a new credit card when your desire is to pay off your existing ones. However, the difference is that you get a card with a 0% introductory period of 12–18 months. When you transfer your other credit card debts to this new card, you'll have eliminated the outstanding debt and be left with one card to pay with better terms.

However, you need to clear the debt within the introductory period, or the new interest rate might be higher than the one you had. This strategy requires discipline, though. If you are struggling financially, it can be challenging to avoid acquiring new credit card debt while paying off the balance transfer.

Acquiring a fixed-rate personal loan

This approach is similar to balance transfer, but the difference is that personal loans typically require good credit and may come with a high-interest rate. However, personal loans typically have more favorable interest rates than credit cards. Before moving your debt, use a debt consolidation calculator to estimate your savings.

2. Set up a new payment plan

Even though creditors can be harsh when collecting their overdue balances, they are often willing to discuss with consumers how they can help them make payments. Some creditors are open to negotiating payment terms if they think they may not be paid at all because of your dire financial situation. Other creditors may offer registration into their hardship program, especially if you are a loyal and established client.

The hardship or assistance program works by lowering your interest rate or waiving certain fees for a specific period, often three months or more. Examples of hardship are unemployment, illnesses, disability, death, and natural disasters.

For those consumers who ask “how to pay off credit card debt when you have no money,” the assistance program can be one of the approaches to use. The debt adjustment you receive once you are enrolled in the program can help you get back on track and pay off your debt.

Are creditors calling you multiple times a day for the same debt? Stop them using our Debt Validation Letter.

3. Settle the debt for less

Debt settlement allows you to pay the debt for less than the original amount. It typically entails approaching the creditors or debt collection agency with a settlement offer and paying off a portion of the debt in a lump-sum payment to clear the balance.

You can make an offer to settle yourself or seek the assistance of a credible debt settlement company. These companies often take over the process and approach creditors and collectors on your behalf as you continue to make payments to an account they’ve had you open.

Most creditors, banks, and collection agencies are willing to settle, especially with debtors who have experienced unexpected life events like health issues, death of a loved one, or job loss.

To settle your debt, follow these simple steps:

  • Validate the debt. Before you offer to settle, be sure the debt is accurate and yours.
  • Make an offer. Determine how much you can afford to pay, and contact the creditor, debt collector, or attorney (if you’ve been sued) to communicate your first offer.
  • Negotiate. You might have to go through a few rounds of negotiating before you come to an agreement.
  • Get the settlement agreement in writing. You’ll want this for future proof that the debt was settled and your account was closed.

The following video explains more about how you can settle your debt for less:

4. Work with a credit counselor

A credit counselor is a person who assists consumers in better managing their finances. They can help you thoroughly examine your finances and determine where your challenges stem from. Afterward, they assist you in creating a debt management plan, including paying off your debts and budgeting. Once you devise a plan, the counselor may contact the creditor, explain your situation, and request better payment terms.

Most credit counseling programs take three to five years to help you pay off debts—depending on your financial abilities. Working with a credit counselor could be a viable option for consumers who ask, “How to pay off $10,000 credit card debt.” Be careful when choosing a credit counselor because you can easily be scammed.

To get started with a credit counselor, check out this list of credible and approved credit counseling agencies, compiled by the U.S. Trustee Program.

5. Use the snowball or avalanche payment method

Consumers who ask “how to pay off credit card debt fast” will love the following payment strategies that will assist them in achieving their financial freedom sooner rather than later.

Debt snowball method

In this approach, you pay the smallest debt first, then add that payment to whatever you are already paying on the next smallest. By focusing on one debt at a time and snowballing your payments (while continuing to make minimum payments on all your credit cards), you can pay off your credit card debt years earlier than if you continued to make minimum payments.

Debt avalanche method

In this method, you start paying off the debt with the highest interest rate and then move on to the next highest interest rate, rolling the first payment into what you can now pay on the next debt. This method may save you more money than the debt snowball method, but it lacks the quick gratification of seeing your progress as you erase smaller debts quickly.

Regardless of which debt payment method you use, the idea is that paying one debt at a time can encourage you to continue making payments because you can clearly see the progress you are making.

How to pay off credit card debt with SoloSettle

SoloSettle is a tech-based debt settlement platform powered by SoloSuit. It negotiates settlements directly with creditors for any debt size, ensuring privacy and offering legal defense through SoloSuit. Unlike many passive or scammy debt settlement companies, SoloSettle actively and securely resolves debts, earning customer praise for its efficiency and support.

Settle with SoloSettle

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