How to pay off 6000 in credit card debt

Debt articles

Key takeaways

To tackle credit card debt head on, it helps to first develop a plan and stick to it
Focus on paying off high-interest-rate cards first or cards with the smallest balances
When you pay more than the monthly minimum, you’ll pay less in interest overall

If you carry credit card balances month to month, paying off that debt fast might be easier than you think. The key is developing a good plan and sticking to it. These four strategies can help you decide which course to take to quickly pay off any credit card debt.

Target one debt at a time

Do you carry a balance on more than one credit card? If so, make sure you always pay at least the minimum on each card. Then focus on paying down the total balance on one card at a time. You can choose which card you target in one of two ways:

Focus on high-interest debt

Check the interest rate section of your statements to see which credit card charges the highest interest rate, and concentrate on paying off that debt first.

Try the snowball method

With the snowball method, you pay off the card with the smallest balance first. Once you’ve repaid the balance in full, you take the money you were paying for that debt and use it to help pay down the next smallest balance.

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Pay more than the minimum

Look at your credit card statement. If you pay the minimum balance on your credit card, it takes you much longer to pay off your bill. If you pay more than the minimum, you’ll pay less in interest overall. Your card company is required to chart this out on your statement, so you can see how it applies to your bill.

Pay a bit extra each month if you can. Every dollar over the minimum payment goes toward your balance—and the smaller your balance, the less you have to pay in interest.

Consolidating your debt lets you combine several higher-interest balances into one with a lower rate, so you can pay down your debt faster without increasing payment amounts. Here are two common ways to consolidate debt:

Transfer balances

Take advantage of a low balance transfer rate to move debt off high-interest cards. Be aware that balance transfer fees are often 3 to 5 percent, but the savings from the lower interest rate may often be greater than the transfer fee. Always factor that in when considering this option.

Tap into your home equity

If you have equity in your home, you may be able to use it to pay down card debt. A home equity line of credit may offer a lower rate than what your cards charge. Be aware that closing costs often apply.

If you do consolidate, keep in mind that it’s important to control your spending to avoid racking up new debt on top of the debt you’ve just consolidated.

Review your spending

Start by categorizing your monthly spending, for example: groceries, transportation, housing and entertainment. Your credit card statement can be a helpful tool; many issuers categorize your spending. Look for areas where you can cut back. Then take the money you’ve freed up and apply it to paying down your debt.

Pay with cash

One way to manage your overall debt is to consider purchasing things with cash. Using cash or a debit card can help you avoid overspending or making impulse purchases—plus you eliminate any extra fees that may apply when paying with plastic. You’ll also have a clear understanding of how much is going out vs. coming in every week or month.

Use financial windfalls

Commit raises, bonuses or other financial windfalls to debt reduction rather than adding these funds to your monthly spending pool. Using this “extra” money to chip away at your debt can help you reach repayment goals faster.

More from Bank of America

Debt, in and of itself, isn’t always a bad thing. Certain low-interest debt, like student loans and mortgages, can be an investment that will increase in value and generate income in the long-term. That’s usually not the case, however, with credit cards.

“It’s important to reduce credit card debt … because credit card interest is compounded daily and can cause your financial growth to remain stagnant,” explains Dino Selita, president of The Debt Relief Company. “Credit cards are only meant to be used as a short-term vehicle for borrowing against your cash flow. As a lending product, they will cost more in interest than any other financial product.”

If you’ve found yourself struggling with credit card debt and are worried it’s impacting your credit, don’t panic — there’s a way out. Here are some strategies to pay it off and get your financial life back on track.

Avalanche method

The avalanche strategy is a popular way to eliminate credit card debt. It focuses on paying off credit cards with the highest APRs first to save as much as you can on interest.

“So, if you have one credit card with a 15 percent interest rate and another with an 18 percent interest rate, you would pay off the debt accumulated on the 18 percent credit card first,” says Freya Kuka, founder of the personal finance blog Collecting Cents.

It saves you money in the long run to eliminate the most wasteful recurring payments first. “This method works well for disciplined people who want to be debt-free with the most effective strategy,” says Kuka.

Make sure you’re still making minimum payments on your lower-interest credit cards as well, to avoid late fees and damage to your credit. Missed payments and unpaid debts will remain on your credit report for seven years.

Then, when you’re finished paying off the card with the highest interest rate, move to the second-highest APR and repeat until you’re fully rid of credit card debt.

Snowball method

Paying off credit card debt can be mentally exhausting. You may feel like you’re spending a big chunk of your income trying to eliminate it, yet all your accounts are still showing a balance.

If you’re worried this might make you lose motivation, consider using the snowball method. It works by the same principle as the avalanche method, but instead of focusing on high-interest credit card debt, you concentrate on paying off the cards with the lowest balances first.

For example, if you have one credit card with a balance of $2,000 and an 18 percent APR and another card with a $750 balance and a 14 percent APR, you would pay the second credit card down first because it has a lower balance, even though it also has the lower interest rate.

“My husband and I used the snowball method to get completely out of debt, including our mortgage. In all, we have paid off over $260,000 in debt,” says Stacie Heaps, personal and family finance writer at Families for Financial Freedom. “I am a big fan of the snowball method because it gives you quick wins at the beginning that help you get motivated and stay motivated to get out of debt.”

Keep in mind that using this method is likely to save you less on interest compared to the avalanche strategy. But if you know seeing immediate progress is necessary for you to continue, the snowball method might be an excellent option.

Try debt consolidation

The idea behind debt consolidation is combining high-interest balances and converting them into low-interest debt, such as personal loans or other credit cards. There are a couple of ways to do it:

Get a balance transfer credit card

Balance transfer cards allow you to transfer a high-interest credit card balance to a new card with a temporary 0 percent APR. The no-interest period typically lasts between 12 and 18 months. Using a credit card payoff calculator can help you find balance transfer cards to fit your needs.

If you pay off the balance during that period, a balance transfer card can be an amazing deal. You won’t just lower the interest — you’ll eliminate interest charges for the length of the introductory period.

If you don’t finish paying off the debt by the end of that period, however, the card’s regular APR will kick in, and it may be even higher than your current interest rate.

To make sure you don’t get caught with high interest rates, consider transferring only the amount you know you’ll be able to pay off in time. You could then set up a payment plan for yourself with higher monthly payments. For example, if you owe $1,200 and your 0 percent introductory period is 12 months, you would pay $100 per month so that it’s paid off in time.

Note that balance transfer cards are typically available to consumers with excellent and good credit. If you know your credit needs some work, you might want to choose a different method to reduce your debt.

Consider a debt consolidation loan

Another option for those with good credit is to take out a personal loan. When you do this, you need to take out a loan with an interest rate that’s lower than your current debt. Once you apply it to your credit card balances, you’re left with a single fixed monthly payment.

This makes a personal loan not only a smart way to pay less in interest but a convenient one, too. It’s easier to keep track of one loan than a few credit cards. Plus, having to make one payment a month instead of many can help alleviate some financial stress.

While a longer-term personal loan can reduce how much you pay a month, aim to pay it off as soon as you can. Longer repayment terms may lead to paying more in interest over time, even if your new interest rate is lower.

Build an emergency fund

According to a Bankrate survey from January 2022, 56 percent of the 1,004 U.S. adults surveyed can’t pay their expenses from their savings account during an emergency.

It’s important to have an emergency fund because it can help you create the security to avoid debt during a financial emergency, plus:

You don’t have to use your credit card.
You won’t go into debt for a loan.

You shouldn’t use an emergency fund for your daily spendings or monthly expenses — keep in mind that it’s for emergencies only. A good rule of thumb is to have around three to six months of basic expenses in your savings account.

Today’s inflation might be making it tough to start a savings account. You can start by lowering your expenses in the following ways:

Reduce the number of your streaming services accounts.
Instead of constantly buying coffee outside, try having it at home.
Avoid spending on restaurants and fast food.
Create a budget and stick to it.

While you build your emergency savings, don’t stop paying the monthly balances of your credit cards. Try to deposit a specific amount in your savings account, either on a weekly, biweekly or monthly basis.

Bottom line

As you tackle your debt using one of these methods, you might also try negotiating with your credit card company to either settle your debt, reduce your interest rate or agree on a more feasible repayment plan.

Credit card debt can be quick to accumulate and tough to get out of. Don’t let it bring you down: Pick a strategy you think you can stick with and keep working at reducing your balances. With enough discipline and patience, you’ll finally start seeing zeros on your credit card statements.

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

Ana Staples is a staff reporter and young credit expert reporter for CreditCards.com and covers product news and credit advice. She loves sharing financial expertise with her reader and believes that the right financial advice at the right time can make a real difference. In her free time, Anastasiia writes romance stories and plans a trip to the French Riviera she'll take one day—when she has enough points, that is.