How to Pay Off Credit Card Debt: Strategies to Get Out of Debt

Start by creating a complete snapshot of what you owe. List each card’s balance, annual percentage rate (APR), minimum payment, and due date. It can be easier to track debt repayment with a simple spreadsheet as a visual progress tool, which helps you watch balances fall over time and stay engaged with your plan.

• APR: The yearly cost of borrowing, including interest and fees, expressed as a percentage. It allows for easy comparisons across debts.
• High interest cards: Identify high-interest cards and any late or missed payments.
• Utilization rate: Note your credit utilization—the ratio of balance to limit on each card—since high utilization can weigh on your credit score. This is different from your debt-to-income (DTI) ratio.

A simple view like this can help you prioritize:

Image is a representative example for illustrative purposes only and does not reflect actual customer information.

Your budget is the engine of your payoff plan. Start by listing all income sources and separating fixed expenses (mortgage, insurance, utilities) from discretionary spending (dining, travel, subscriptions). A simple framework to build a realistic budget helps you direct surplus cash toward debt rather than leakage in nonessentials.

• Use a service that allows you to set category limits, monitor spending, and track debt progress in real-time.
• Redirect windfalls—such as tax refunds, RSU vesting proceeds, or annual bonuses—toward your highest-priority debt instead of lifestyle creep.

There are proven approaches to structure extra payments while you continue making at least the minimum on all accounts every month, the debt snowball and debt avalanche methods. That said, these strategies don’t work for everyone, which can make options such as debt consolidation a better option.

Here’s how they compare:

Debt snowball method

With the snowball method, you pay extra toward your smallest balance while making minimums on all others. When that smallest balance is gone, you roll its payment into the next smallest balance, accelerating your momentum with each payoff. This approach creates fast behavioral wins and can be easier to stick with—especially if motivation is your main obstacle—even if it can cost more in total interest over time.

Debt avalanche method

With the avalanche method, you list debts by APR from highest to lowest and direct all extra funds to the top card while paying minimums on the rest. As each card is paid off, you move down the list. This strategy minimizes total interest paid, though visible progress can be slower at first—an important trade-off to weigh if you value early wins for motivation.

Debt consolidation is a loan to consolidate other loans and balances into a single account—often at a lower fixed rate—so you have one predictable payment and a clear payoff date. In many cases, it converts variable-rate revolving debt into a fixed-rate personal loan with a defined term.

For high earners with complex credit profiles or those who are concerned about managing multiple debts separately, consolidation can add simplicity without sacrificing flexibility. Always review the full cost of any solution; hidden fees can erode savings, so ask about all costs upfront.

When comparing options, focus on the intro versus ongoing rate, all fees (origination, balance transfer, closing), repayment term, total interest cost, payment stability, impact on credit, funding speed, and whether collateral is required.

Balance transfer credit cards

A balance transfer card may offer a 0% introductory APR for 12 to 18 months, allowing you to move existing balances and pay off multiple credit cards interest-free within that window. Factor in the transfer fee—typically 3–5%—and compare it to the interest you would otherwise pay during the promo period to confirm the savings.

Eligibility usually requires good to excellent credit, and issuers may cap transfers based on your approved limit. You typically cannot transfer balances between cards from the same issuer.

Create a payoff schedule that retires the balance before the intro period ends by dividing the transferred amount (plus fee) by the number of 0% months and automating that payment. Avoid new purchases on the transfer card because they may accrue interest immediately and complicate payment allocation. Stay current—one late payment can end the promotional rate early and trigger a higher APR on the remaining balance.

Personal loans for debt consolidation

A personal loan for debt consolidation is an installment loan that pays off your cards and replaces them with one fixed monthly payment, a set payoff date, and potentially a lower rate than revolving credit. A fixed rate and term provide predictable payments and an automatic path to a zero balance by the end of the loan.

Evaluate total cost—not just the rate—by reviewing any origination fees and the interest you’ll pay over the life of the loan versus your current credit card path. Choose the shortest term you can comfortably afford; longer terms lower monthly payments but can increase total interest.

As a part of this process, consider how debt consolidation affects your credit score. Paying off revolving balances can lower utilization, adding an installment loan can improve credit mix (but includes a hard inquiry), and keeping old card accounts open with minimal use may help preserve utilization and account age. 

Debt consolidation loans are a good idea for borrowers who want payment certainty, need more than 12 to 18 months to repay, or prefer a fixed rate and defined payoff date.

Home equity financing and other alternatives

Borrowing against your home’s equity via a home equity line of credit (HELOC) or home equity loan can offer lower rates than credit cards but typically includes closing costs and secures the debt to your home.

A HELOC is a revolving line secured by your home, usually with a variable rate. It offers a draw period followed by a repayment period, providing flexibility but variable payments and potential annual or inactivity fees. On the other hand, a home equity loan is a lump-sum installment loan with a fixed rate and term, offering predictable payments but less flexibility and the requirement to pledge your home as collateral.

Expect appraisal, title, and origination fees, and plan for a timeline that can take weeks to close. Compare APRs and all fees to ensure any lower rate truly offsets costs. Lenders generally require sufficient equity (acceptable loan-to-value), stable income, and strong credit.

Debt consolidation loans and HELOCs or home equity financing can accomplish the same thing, but be sure to evaluate all the risks of home equity financing and consider all your options.

Turn progress into a routine. Use a service to visualize your balances, set reminders, and celebrate milestones. Automate payments, such as your balance transfer credit card, and channel any extra cash you have toward your target goal. Small wins—closing a card, hitting a utilization target, or passing a balance threshold—help sustain momentum.

For many six-figure earners, BHG Financial offers a strategic way to simplify and accelerate debt payoff while supporting long-term financial goals. With loans up to $250,000,¹ competitive, fixed rates, and flexible terms up to 10 years,^1,2 you’ll end up with a single, predictable monthly payment and know your exact payoff date.

Our specialized underwriting can accommodate complex financial situations, including multiple income streams and professional trajectories. We also offer concierge-level, U.S.-based support and transparent communication from the application to funding stages. You could be approved in as little as 24 hours and get your funds in as few as five days.³

Ready to take the next step? Start prequalification without any impact on your credit score.⁴