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Credit Card Debt Management

Credit card debt management may be easier than you think. All it takes is a little planning and a little perseverance. Of course, some actions help more than others, but every step you take toward managing your credit card debt will be a step in the right direction as shown on this page.

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Dealing with Credit Card Debt

Credit card debt is more common than you may think. Nearly two-thirds of American cardholders carry some type of debt. While it may seem overwhelming at times, getting out of debt is achievable. The important thing to remember is that even though some actions can have a bigger impact on debt than others, any step towards a zero balance is a step in the right direction.


Pay a bit more

Paying more than the minimum can help you become debt free a lot faster and ultimately lessen the amount you owe.

Pay on time, every time

Regular payments help you work towards eliminating debt and show that you are responsible with credit.

Transfer your balance

Consider transferring your balance to a card with a lower APR. While the transfer will likely have a fee, you could get a low rate to help you save on interest in the long-term.

Watch your wallet

A little discipline can go a long way. Plan accordingly for big ticket items and stick to your budget for every day items. Remember, If you don’t need it, don’t buy it.

Contact your creditors

Before you get overwhelmed, talk with creditors. They can discuss how to get out of debt faster if you’re honest and forthcoming with them.


Pay the bare minimum

The minimum amount makes your debt seem more manageable in the short term, but remember: the less you pay now, the longer it’ll take to pay the total amount.

Make late payments

Being late with payments will harm your credit score. Missing payments can lead to fees, penalties and even raise your interest rate.

Ignore the terms

Your rates may have increased and your card may be costing you a lot more than it should..

Shop till you drop

Max out your card and you may incur penalties, increase rates and damage your credit score.

Neglect your score

A bad credit score will increase the cost of things like home loans, insurance, apartment rentals and more..


Long Term Savings

Paying a bit more in the short term can create greater savings in the long run. Credit card statements show how long it may take you to pay off your balance, and how much you would need to pay if you wanted to pay the balance off in three years.

Based on a credit card with 13.99% APR and $5454.00 balance

Affecting your Credit Score

Your credit card behaviors have a significant impact on your credit score. A payment that’s 30 days late will be reflected in your credit report for seven years.


Find a card for you

Find a card that meets your needs and lifestyle. Some cards give you cash back on everyday things like gas and groceries while others can help you earn towards larger purchases such as travel and electronics.

Talk it out

If payments are out of control or you just feel overwhelmed, work with a credit counselor from the National Foundation for Credit Counseling.

Make payments manageable

The National Foundation for Credit Counseling recommends that personal debt, excluding mortgage or rent, should not exceed 20% of your income on a monthly basis.


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If you’re ready to start managing your credit card debt, you can begin by making sure your credit card payment is received on time, every time and paying more than the minimum required each month. After that, set a monthly budget and practice the art of self-discipline. Next, consider moving your debt to a balance transfer credit card that has a lower APR. If you still feel that managing your credit card debt is overwhelming, contact your creditors directly and ask them for advice on your specific situation.