How to pay off credit card debt: the short answer
Americans owed $1.263 trillion on credit cards in Q2 2026 (New York Fed), and the average APR on accounts charged interest was 22.15% (Federal Reserve G.19). At that rate, a $6,000 balance costs about $111 in interest in a month. A fixed plan beats paying minimums.
1. List every card
Balance, APR, minimum, due date, and promo end date, all from your statements. Your statement also shows how long minimum payments alone would take.
2. Stop the balance growing
Set autopay for at least the minimum on every card so you never pay a late fee, and pause new charges on the cards you're paying off.
3. Find your payoff number
With $6,000 at 22.15%: $150 a month takes 74 months and about $4,995 in interest; $250 takes 32 months and about $1,999; $400 takes 18 months and about $1,090 (our math, no new charges).
4. Pick avalanche or snowball
Avalanche sends the extra to the highest APR first and costs the least. Snowball sends it to the smallest balance first for quicker wins. In our three-card example ($8,700, $500 a month), both finish in 22 months; avalanche saves about $112, snowball clears the first card five months sooner.
5. Lower the rate
Ask each issuer for a lower APR or a hardship program. Balance transfer fees are commonly 3% to 5%, so only transfer if you can finish within the promo. A nonprofit credit counselor may offer a debt management plan; for-profit debt relief companies selling by phone can't charge until they've settled a debt (FTC).
6. Track every month, and roll payments over
When a card hits zero, move its whole payment to the next one. No 10% federal rate cap was law as of Oct 7, 2026, so plan with your actual rates.
General education, not financial, legal, or credit advice. We don't sell or recommend any card or debt relief company. Payoff examples are our math. Facts checked October 7, 2026.
