4 Trusty Ways to Pay off Credit Card Debt in a Hurry and Avoid Interest

So your wallet is stuffed with credit cards that are nearly maxed out.

You’re on a first-name basis with Chase, Citibank and Capital One.

When it’s time to pay for anything, you automatically whip out Visa, MasterCard or Discover like they’re tools in your personal financial Swiss Army Knife.

…and you’re hemorrhaging money on interest payments.

Absolutely. Hemorrhaging. Money.

The good news is, there are proven methods you can use to turn things around and get out from under that burden.

Here are four ways to start paying off your credit card debt right now:

1. Consolidate Your Credit Card Debt

Every month, you make payments toward your credit card debt. But you never seem to make a dent. It’s because of those sky-high interest rates — as much as 24% interest. It can feel impossible to get ahead.

But MoneyLion could help you find offers to cut your interest rate by 70% as soon as tomorrow.

Here’s how it works: MoneyLion can match you with new loan offers at a lower interest rate — as low as 5.20% APR*. That’s 70%* lower than the average credit card interest rate. And it’s the key to finally getting ahead.

You can use this new loan to pay off all your existing credit card debt, then you’ll be left with one (cheaper) monthly payment that will help you get out of debt faster.

If you have a credit score of at least 620, you could get up to $100,000. With no collateral. And terms go up to 144 months.

Worried you won’t qualify? Take two minutes to check online and see if you could cut your credit card interest rate by 70%.

*Based on creditworthiness. Average credit card interest rate is 24.72% as of 8/14/23, according to Forbes Advisor’s weekly credit card rates report.

2. Use the Debt Avalanche Method

Two of the best-known methods to pay off credit card debt are “the avalanche” and “the snowball.”

Following the “debt avalanche” method (also known as “debt stacking”), you pay off your credit cards with the highest interest rates first.

Think of it as killing off your most toxic debt first — your most poisonous, radioactive, money-eating debt.

Rank your credit cards by their interest rate, from highest to lowest.

Here’s an example. (Note to readers: I am totally making these interest rates up.)

• Chase Visa — 22% interest rate — $5,000 balance

• Bank of America MasterCard — 19% — $3,000

• Citibank Visa — 13% — $7,000

• Capital One MasterCard — 8% — $1,000

Each month, make the minimum required payment on each card.

Then, use all your remaining available cash to pay off the card with the worst interest rate. Once you’ve wiped out that balance, move your debt-killing sniper rifle down to your next target.

This technique requires patience, but can save you significant money in interest payments.

And the more interest you pay off, the more momentum you gain — like an avalanche rolling downhill.

3. Use the Debt Snowball Method

Money management guru Dave Ramsey champions this method.

Here, you’re still focusing on eliminating one credit card at a time, but you’re getting rid of the lowest balance first.

With this method, you’d rank those same four credit cards in a different order:

• Capital One MasterCard — $1,000 balance — 8% interest rate

• Bank of America MasterCard — $3,000 — 19%

• Chase Visa — $5,000 — 22%

• Citibank Visa — $7,000 — 13%

Once again, pay the minimum on each card, and use your leftover money to pay off the smallest balance. Once you’ve knocked out that one, move on.

The downside: In the long run, you’ll end up paying more in interest.

The upside: Wiping out each credit card balance will give you a “quick win” and pump you up to keep tackling your debt.

Dave Ramsey’s take: “It’s more important to pay your debts in a way that keeps you motivated to keep going until you’ve wiped them all out. If you begin with the biggest one, you might think you’re not making fast enough progress, lose steam, and not finish the job.”

Which method should you use? Use the one that works for you.

4. Get a 0% Interest Credit Card

I know, I know — get another credit card? What’s wrong with this picture?

In all seriousness, this could be an option for you.

If your credit is good, apply for a zero- or low-interest credit card. To entice you, these cards will offer you a super-low annual percentage rate (APR) — for a certain period of time.

Transfer the balance from your high-interest cards to your new card.

Obviously this step, all by itself, will not magically get rid of your credit card debt. (Presto! Abracadabra! Debt be gone!) No, your credit card debt is still stubbornly sitting there, occupying a different credit card.

The advantage you’ll be saving some serious coin on interest payments, freeing up cash to pay down your debt.

Major caveats:

• You may be charged a balance transfer fee — typically 3% of the amount you’re transferring. Creditcards.com has a handy online calculator you can use to see if transferring your balance is worth it.

• That sweet low interest rate won’t last forever. After your new card’s “super special introductory promotion period” expires — often in six months to a year — its interest rate will shoot up. It might even end up higher than the interest rate you were trying to escape from in the first place. Read the fine print. Try to pay off your debt before this happens.

• Don’t get all spendy with that shiny new credit card. It’s so shiny, so beautiful. It is MY PRECIOUS. That’s how we ended up in this situation in the first place, right?

Bottom line: These are five ways to start paying off your debt. It’s time to get serious about slaying the credit card dragon.