If you’re overwhelmed by credit card debt, you’re not the only member of the club. According to a 2026 Bankrate survey, 47% of credit card holders have a balance, with roughly 22% reporting they don’t think they’ll ever pay it off. But by budgeting and having a repayment plan, you can take back control, one payment at a time.
With credit card interest rates averaging around 19% as of January, being able to attack more than one credit card is ideal. Follow the below steps to tackle your debt more effectively.
Determine All Current Debts and Expenses
To get started, you’ll want to make sure you have a comprehensive overview of all your current expenses. This includes monthly household bills, credit card debt, auto loans, groceries, and recreation expenses.
Your Income
Knowing your numbers is everything. Once your debts and expenses are in front of you, measure them against your monthly take-home pay to get a clear, honest picture of what you're spending versus what's left at the end of the month.
Identify Ways to Reduce Non-Essential Spending
As you go over all your expenses, look for ways to cut back so you have more money leftover to dedicate to debt repayment. Non-essentials include streaming service subscriptions, eating out, entertainment, and recreation. Trimming back on non-essentials doesn't mean giving up fun entirely, it just means being more aware of where your money goes so you have more to help you get out of debt.
Investigate Debt Repayment Strategies
If you’re looking for a good strategy, there are several that can help you pay off your debt more efficiently. One recommended method is the debt snowball method, which is when you target your smallest debt first by paying the minimum payments on your other credit card debts and as much as you can on the smallest balance. It provides momentum (and wins) as you pay off your smallest debt and move onto the next.
Another method is the debt avalanche, which is when you target your highest interest rate debt first, helping you reduce the total amount you'll pay over time. Similar to the debt snowball, once you’ve paid off your highest interest rate loan, you move your focus to the next highest—and so on.
Consider Debt Management and Credit Counseling
Another way to pay down multiple debts more efficiently is by making an appointment with a certified credit counselor. They can help you build a budget that’s designed specifically for your situation, and they can enroll you in a debt management program (DMP). Through a DMP, your counselor negotiates directly with your lenders to consolidate your debts into one manageable monthly payment, often securing a lower interest rate in the process allowing you to pay down multiple loans in three to five years.