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Credit card debt

Paying off credit card debt. Which is the best way to do it?

There are many ways to pay off credit card debt, and no simple answer about which is the best way to do it. The best way will depend on the amount of debt you have and what your money situation looks like.

You can manage some methods on your own if you feel confident you can do it, such as the avalanche method and the snowball method. But if you prefer have experts deal with it for you, you might be interested in the StepChange approach.

On this page you can find:


  • Popular and effective ways to pay off credit card debt
  • The benefits and risks of each method

Use the links below to jump to the content you want to see.

On this page


  1. How can I pay off my credit card debt?
  2. The StepChange Approach
  3. The Avalanche Method
  4. The Snowball Method
  5. Balance transfers
  6. Common questions about credit card debt
  7. Get help dealing with credit card debt

How can I pay off my credit card debt?

There are a few different methods you could use to pay off credit card debt. Some of them you can tackle on your own, while others need the help of a debt advice provider like StepChange. Each method will have benefits and risks.

The StepChange Approach

The StepChange approach is when you get debt advice to find the best way to deal with their credit card debt.

Some of the people we help will start a repayment plan like a debt management plan (DMP) or debt payment programme (DPP) clients pay off their credit card debt.

Others may be recommended an insolvency solution after debt advice. This helps you to write off debt if you cannot afford to pay it back. Read more about writing off credit card debt.

You can get a DMP if you live in England, Wales, Scotland or Northern Ireland. You can only get a DPP if you live in Scotland.

Any money you have left after you have paid your bills and living costs is paid in a single monthly payment to StepChange. We share this money fairly between the people you owe.

The best part is, a DMP, DPP and our service is free. Once your plan is set up, all you need to do is send us one monthly payment. We will take care of the rest and make sure your payment is split fairly between the people you owe.

How does it work?


  1. Start by getting free online debt advice. This can feel like a long process, but you can pause, walk away, and continue as many times as you need to. In your debt advice session, we will ask about your income, spending and debts to help us create your household budget
  2. We will help you set up your DMP or DPP with us if it is right for you
  3. When your DMP or DPP is set up, all you have to do is send us one monthly payment. We base your monthly payment on your budget and make sure you can afford it
  4. We will split your monthly payment fairly between all the debts included in your DMP or DPP

How does StepChange work out how to pay each debt?

We split your monthly payment between each debt pro-rata. This means 'in proportion' and is based on a few different things, such as:


  • How much you owe to each debt (your outstanding balances)
  • How much you agreed to pay each debt when you took the debt out (your contractual payments)
  • How much time you agreed to pay back the debt in (the term)

Benefits of the StepChange approach


  • Once your DMP or DPP is set up, you only need to send us one monthly payment. We will manage the rest, so you don't need to worry
  • When you have a DMP or DPP with us, we contact the people you owe to let them know. With a DMP, sometimes they will agree to stop adding interest and charges. With a DPP, they must stop adding interest and charges
  • You will pay your debts off at an even rate, meaning you can chip away at them all together
  • We are with you every step of the way. We will check in with you at least once a year to make sure you can still afford your DMP or DPP
  • Creditors know who StepChange are, so when they receive payments from us, they know you are paying them fairly and paying what you can afford

Risks of the StepChange approach


  • Your plan can close if you miss too many payments. But DMPs and DPPs can easily be changed. Our trained advisors are here to work with you to stop your plan from closing
  • On solutions like DMPs and DPPs, you will rarely be making the agreed payments to your debts. This will impact your credit file and credit score. But they can always be repaired once you are debt free

You should not use any of the other methods mentioned below if you go ahead with a DMP or DPP using the StepChange approach. This could put your plan at risk of closing.

The Avalanche Method

The avalanche method is when you make minimum payments on all your debts but put any extra money toward the debt with the highest interest rate.

How does it work?


  1. Start by making a list of all your credit cards. Make a note of how much you owe, the interest rate and the minimum payment you can make
  2. Order your list based on the interest rate of each credit card from highest to lowest
  3. Make minimum payments to all your cards to avoid extra fees
  4. Pay any extra money you have to the credit card with the highest interest rate. Make sure you have enough to cover bills and other priority payments first
  5. Once you have paid off the card with the highest interest rate, move on to the card with the next highest interest rate. Repeat this until you have paid off every card

How to find the interest rate of your credit cards

You can find out the interest rate of your credit card by checking your banking app or credit card statement. Look for any mention of the annual percentage rate (or APR for short). This will show as a percentage (%).

Benefits of the avalanche method


  • Dealing with the highest interest rate cards first means you will pay less back in interest overall
  • Making minimum payments to your other debts means you can avoid extra charges for late or missed payments, protecting your credit file and credit score

Risks of the avalanche method


  • There is no easing into this method. It starts at the hardest level and gets easier over time
  • The early stages lack quick wins which can make some people lose motivation to continue
  • It is a lot of work and effort to keep on top of this method. When you have multiple payments to manage every month it is easy to make a mistake
  • Making minimum payments for a long period of time can lead to persistent debt. This is when you are only paying the interest of a debt and the debt balance doesn't go down

The Snowball Method

The snowball method is when you make minimum payments on all your debts. Then you pay extra money toward the debt you owe the least amount of money to.


  1. Start by making a list of all your credit cards. Make a note of how much you owe to each of them and the minimum payment you can make
  2. Order your list based on the amount you owe from smallest to largest
  3. Make minimum payments to all your debts to avoid extra charges
  4. Pay any extra money you have to the credit card you owe the least amount of money to. Make sure you have enough to cover bills and other priority payments first
  5. Once you have paid off the card with the smallest balance, move on to the card with the next smallest balance. Repeat this until you have paid off every card

Benefits of the snowball method


  • You will see progress quickly which can help keep you motivated
  • When you have paid off a debt, you can use its minimum payment to pay towards the next smallest balance. This means you will make consistent larger payments over time

Risks of the snowball method


  • Credit cards with higher interest rates will continue to grow while you are paying off the smaller cards, meaning it could take longer to pay off the cards you owe the most money to
  • It is a lot of work and effort to keep on top of this method. When you have multiple payments to manage every month it is easy to make a mistake
  • Making minimum payments for a long period of time can lead to persistent debt. This is when you are only paying the interest of a debt and the debt balance doesn't go down

Balance Transfers

A balance transfer is when you move your credit card balance from a high interest credit card to a low or zero percent (0%) interest credit card.

Moving to a 0% interest credit card means that you don't pay interest on the money you owe. But this 0% interest rate only lasts for a certain amount of time, usually between six months and two years.

After the 0% interest rate time ends, you will start to be charged a higher interest rate unless you transfer your balance again to another 0% credit card.

How does it work?

The process of doing a balance transfer can be slightly different depending on the card provider. This is a general guide of how it works:


  1. When you have found a 0% credit card that meets your needs, you will first need to apply for it. Be aware that this will involve a check on your credit file which will affect your credit score
  2. Your new lender will pay the full amount of your old credit card and transfer it to your new 0% credit card
  3. You make monthly payments to your new credit card every month as you normally would

Benefits of balance transfers


  • A credit card with low or 0% interest means you can focus on paying off the credit card. There will be no interest to worry about
  • You may be able to combine (or 'consolidate') several credit card balances onto one 0% credit card, meaning you will have fewer monthly payments to manage and less interest to pay

Risks of balance transfers


  • The 0% interest rate does not last forever. When it ends, the interest rate often jumps to a much higher amount
  • You may have to pay a one-off fee for the balance transfer. The fee amount is usually based on a percentage (%) of your balance and varies between lenders
  • The lender can cancel the 0% offer if you miss payments

Unsure if you need help with credit card debt?

We can help you work it out. All you need to do is take five minutes to answer ten questions.

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Common questions about credit card debt

There are a few ways to consolidate credit card debt.


  • One way is to combine your debts into one single credit card through a balance transfer. This means you only make payments to one credit card every month, instead of several
  • Another way is to take out a debt consolidation loan. The loan is used to pay all your other debts. This means you only make payments to repay the loan every month, instead of managing several credit card payments

But debt consolidation means you are taking out another debt. You still have the same amount of debt to pay off overall. It is always best to get debt advice first as there may be other options open to you.

Read more about debt consolidation.

You may be classed as being in persistent debt if in the last 18 months you have paid more in interest, fees and charges than you have paid to the actual debt.

Your lender will send you a letter if they believe you are in persistent debt. The letter will advise you to pay more monthly if you are able, or to contact a free debt advice provider if you are struggling.

Learn more about persistent debt.

It is only good to pay off credit card debt in full if you can afford to. The faster you pay off debt, the less you will have to pay in added interest. But some lenders will also charge extra fees if you ask to pay off your debt early.

For a lot of people, it is not possible to pay off credit card debt in full. In these cases, it is best to keep making the monthly payments you agreed to when you took out the debt.

It is only a problem if you cannot afford to make the agreed payments to your debts. If this sounds like you, it is best to get free debt advice to find out what your options are for dealing with debt.

StepChange is a free debt advice provider. Get started with online debt advice at any time that suits you.

There is no 'quick' way to pay off credit card debt that works for everyone. But there are some things you can do to try and pay it off faster.


  1. Make a budget to see what money you have coming in every month, and what you pay out every month for bills and living costs
  2. Use any money you have left to pay towards clearing your debts every month. Only make extra payments if you will not be charged for them, and you are confident you can afford to overpay
  3. Ask the people you owe if they will stop interest and charges on your accounts. This will help you clear the actual debt balance faster

There is no set number for 'too much' credit card debt. To find out how much 'too much' is, ask yourself one question:

'Can I afford to make the repayments?'

If the answer is yes, you do not have too much credit card debt. You can be sure your credit card debt is affordable if:


  • You are managing to pay back what you agreed every month
  • You don't miss monthly payments
  • You don't feel stressed when thinking about the debt you have

If the answer is no, you will be dealing with more debt than you can handle. You will know you are struggling if:


  • You are taking out more credit to pay back debt you already have
  • You are missing payments, or paying back less than you agreed
  • Thinking about your debt causes you stress and anxiety The people you owe have sold your debt(s) to a debt collection agency
  • The people you owe are warning you about County Court judgments (CCJs) or bailiffs

Get help dealing with credit card debt

StepChange is a free debt advice provider. We can help you if you are finding it hard to manage credit card debt and will not judge you or your situation.

Get started with online debt advice at any time that suits you. Online advice gives you the freedom to save your progress, pause when you need to and complete the session at your own pace. Our friendly advisors are on hand to support you if you get stuck in the process.

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