Getting rid of or learning how to pay off credit card debt isn’t a walk in the park. It’s hard, but it’s completely doable. Learn the tips and tricks to paying off credit cards in a year or so. You’ll also learn how to save money on interest, avoid penalties, waive fees, among others.
A lot of us have attempted to get rid off of our debt, specifically our credit card debt. I hear you. It’s hard and complicated at times.
I’ve been there, and I can feel your pain and frustration. Click here to learn more on my story on how my wife and I were able to get out of debt.
Believe it or not:
There’s a way out to this financial problem. You don’t even need to seek professional advice to make it work.
Do I have your ears now and your attention?
Wait a minute! Before I move on with the post, I want to answer the questions you have in mind right now:
How can I pay off my credit card with no money?
That’s one question that people ask time and time again.
The answer is there is a way you can pay off your credit card with no money.
Believe it or not, it’s possible. The detailed answers to this question are found in the next section of this possible. But for a quick response, here’s what I have for you:
- Start by setting your goal. Your goal is to pay off your credit card. Period. List down all your credit card debts and rank them by APRs or dollar amounts. You can use these budget templates to get started. See the ways on how to save money for the S.M.A.R.T financial goal setting.
- Freeze your credit cards. Stop using your credit cards no matter what the situation is. Pay everything by cash.
- Prioritize your debts. If you have more than one credit card debt, prioritize which one you want to pay off first. Preferably, you would want to focus on a bill with the highest interest rate. That’s because the higher the interest rate, the higher the interest you’re paying.
- Trim your expenses. You need to start saving money here and there by cutting some of your expenses. You can use negotiation apps like Trim (see Trim review here) and Cushion (see Cushion app review here) to help you cut some expenses with ease.
- Create a monthly spending plan. You need to execute a plan that’s doable to you. Make sure it’s realistic and would work well for you.
These are some of the things you can do. You’ll learn more by reading the rest of the below.
Why should I care about paying my credit card debt?
You should care because you don’t want to be burden by those debts and the negative consequences that come along with them.
For example, when you have a high debt to income ratio, your credit score will take a hit, and you may not be able to qualify for much-needed loans like mortgage, auto loan, and the likes.
Besides, the more credit debt you have, the more interest you pay. This money could quickly go to savings if you pay off all your debt. Click here on how to improve credit score.
How To Pay Off Credit Card Debt: 13 Proven Tips That Work
Now, it’s time to discuss the ways on how to pay off credit debt faster than most people think. Depending on which ideas you choose, you’re likely to see different results.
Here are those ways:
1. Don’t use your credit cards
The first tip when wondering how to pay off credit card debt is not to use your credit cards, if possible.
Sure, it sounds more comfortable than it might be to do so. But, if you have some extra cash and you have the opportunity to use one or the other, choose cash over credit. Click here if you can’t pay bills.
By not using your credit cards, you won’t be adding to the revolving debt which is present with your credit card balance.
Plus, if you can refrain from using your credit cards, you can lessen the credit utilization ratio to 30% or under.
A high credit utilization ratio is bad for your credit score, which is something else you need to watch out for in addition to the mounting credit card debt.
In addition to having a high credit card balance, you’ll also be paying interest rates on every purchase you make.
When you don’t use your credit card and pay cash instead, you’ll have no interest rate to worry about, and you’ll be able to pay off your credit cards faster.
2. Use a credit card with no current balance and then pay it off
If you find that you have to use your credit card for a purchase and don’t have the cash to do so, use your credit card, but make it one with no current balance.
This will help when wondering how can I pay off my credit cards faster.
The high-interest rates associated with credit card usage is what drives up the balance and makes it challenging to repay the debt.
Here’s the thing:
When you are making purchases on no-balance credit cards and then paying off credit cards in full right away before the end of the month, you won’t be charged interest.
It doesn’t matter if the interest on your credit card is low; it is still something which adds up and adds up quickly.
When searching for ways as to how to pay off credit card debt, note that paying off your current month’s credit card debt before the interest rate accruing will make your purchase much more affordable and the debt on that credit non-existing once again.
3. Pay off debt with a consolidation loan
If you have multiple credit cards and high rotating debt on each of them, consider obtaining a consolidation loan to pay off the credit cards.
This falls on the list of one of the tricks to paying off credit cards.
Here are the benefits of a consolidation loan:
When you apply for and receive a personal consolidation loan, you are taking multiple credit cards, each with their high-interest rates, and combining them into one debt with one interest rate.
The money you’ll save by reducing the numerous interest rate payments and combining the debt with one interest rate to worry about is extraordinary.
Another benefit to obtaining a consolidation loan is that you won’t have to worry about keeping track of multiple credit card payments each month.
Having too many credit card payments at issue each month and all with different due dates can make it easy to miss a payment or two.
This will add to the overall debt and make it even more challenging to pay off the credit cards.
Obtaining loans to pay off credit card debt will help you to get your credit card debt in order and make it easier to pay it off.
This is the right solution when wondering how to pay off credit card debt.
Several top-rated consolidation loans:
SoFi offers online access to check your loan rates and apply for a consolidation loan to help you get rid of your credit card debt.
With easy access online and quick response time, you’ll find SoFi to be a suitable personal loan option and make it easy for paying off credit cards in full.
For debt consolidation in app form, Tally is an excellent debt management option to consider.
With Tally, you can keep on top of your credit card debt through the app, secure a line of credit through Tally and then pay off your credit card debt with ease.
Another personal loan option to peruse when you want to pay off multiple credit cards with one loan is Payoff.
With Payoff, you can obtain a loan, choose which credit card balances you want to pay off and help to increase your credit score by doing so.
No matter what types of loans to pay off credit card debt you obtain, this move will help you to reduce your credit card debt and pay off your credit card bills.
Click here for SoFi | Click here for Tally | Click here for Payoff
4. Increase your budget for debt repayment
Your monthly budget probably includes costs such as utilities, groceries, a mortgage payment, and more. Click here on how to save money on groceries.
It most likely also includes money reserved for credit card payments.
If you’re wondering how can I pay off my credit cards faster, your answer lies within your budget.
If possible, see if you can tweak your budget to allow for more money to be put towards your credit card debt and help you when you are faced with how to pay off credit card debt.
Focus on items within the budget than can be altered each month, such as groceries or entertainment, and move a little bit of the funds from those categories over to the credit card category. Click here to benefits of budgeting.
Even if you can add a small percentage more to your credit card payments each month, this will help to reduce the debt you have and make it possible for you to pay off your credit card debt more quickly.
5. Obtain lower interest rates
With credit cards always having a balance on them, you will continue to pay interest rates, and these can be pretty high.
If you know that you will be unable to pay off your credit cards for a while, ask the credit card company for a lower interest rate on your account.
Some credit card companies will do this willingly, while others may not be as eager to do so.
But, you never know until you try.
Inquiring about a credit card interest rate decrease can quickly be done by calling the credit card company and speaking with a customer service representative.
They may only knock a few percentage points off of the interest rate, but any little bit helps.
When you pay interest rates on credit cards, you are throwing away good money.The less of an interest rate that you have on a credit card, the more quickly you’ll be able to pay down the card balance and reduce your credit card debt.
6. Make extra money to put towards debt
If you work a 9-to-5 job with a set salary, it may be difficult to earn additional money with that particular employer.
You might be wondering how to pay off credit card debt with no money.
However, you can earn some extra money other ways and put that cash towards rotating credit card debt and help you with how to pay off credit card debt.
Side hustle gigs are a helpful way to make extra money in your spare time and put that money towards additional credit card payments.
You can take paid surveys online, pet sit, become an Uber driver, use online delivery services to deliver food through Door Dash, and take part in other side jobs in your free time when you’re not at the office doing your full-time work.
This extra money will help you to reduce your credit card debt leading you towards debt-free living (or partial debt-free living).
7. Pay off higher interest rate credit cards first
If you have multiple credit cards with balances on all of them, but the larger monthly payments towards the ones with the highest interest rates.
You want to pay off the highest interest rate credit cards first and eliminate that rotating debt.
Of course, you'll have to make payments on all of your cards each month.Just try to pay above the minimum amount on all credit cards and then more so with the higher interest credit cards.
Once you pay off your high-interest rate credit cards, paying off your lower interest rate cards will be much more comfortable and money-saving overall.
Paying off high-interest-rate cards will aid you when pondering how to pay off credit card debt.
8. Transfer credit card balances to interest cards
Many credit card companies have interest rates attached to their credit cards.
However, you may be able to find certain credit card companies which offer no balance transfers.
With this setup, you can take your high-interest rate credit cards and combine them on one no interest rate credit card.
You most likely have to open a new credit card to be able to get this zero-interest deal, but that’s okay.
The money you’ll save by getting rid of those high-interest rates on multiple cards will pay off in the end tremendously.
How to Create a System for Paying Off Your Credit Cards
Now you know how to pay off those credit card debts; now it’s time to create a plan on how to pay them off. Without a plan, you’d be all over the place and not getting anything done.
Trust me, I’ve been there, and it was a mess not having a plan or a system in place.
1. Get the big picture of your total debt
The first thing you need to do is to have a good idea as to your overall debt.
Go over your current credit card debt and see how much total debt you owe.
Then, look at each credit card balance and note the interest rate associated with each.
Use a debt management calculator to help you with your calculations and put all of the information into an Excel spreadsheet to continually refer to as you pay down your debt.
2. Pay the credit card minimum
Once you have a good idea as to your credit card debts and the accompanying interest rates, you can start putting your money to work for you.
You want to be sure to pay the credit card minimums on all cards first and foremost as you embark on how to pay off those pesky credit card debt.
Missing even just one payment can be a costly mistake as there are often late fees associated with credit card payments.
When you pay the credit card minimums on all card, you can move on to tackling the higher interest rate cards.
3. Pay extra money on higher interest rate cards
You want to make an extra effort to pay off higher interest credit cards first.
These high-interest cards are the ones which will keep your credit card debt in rotation for a long time to come.
When you put extra money towards these high-interest rate cards, above and beyond the minimum payment, you’ll see your debt shrink down more quickly.
If you have to choose just one card to pay extra money on, pick the highest interest card and work on that one each month to knock down the debt.
4. Tackle the next highest interest rates
After you pay off the highest interest rate credit card (and make sure you don’t close the account!), start working on the next highest interest rate card.
Depending on your income for the month (click here for passive income ideas to earn you extra money), you may be able to pay a little bit more on the higher interest rate cards each month which will help you with the question of how to pay off credit card debt.
Work within your budget but, if possible, try to pay as much money as possible to eliminate those debts.
5. Continue until all credit card debts are paid
Continue with the previously-mentioned steps until all of your credit cards are paid off.
The time that it takes to do so will depend on your overall credit card debt and how much extra money you can devote to paying off your credit cards.
Following these steps will provide you with an easy-to-follow method to lessen and eventually eliminate your credit card debt.
Tips for Saving Extra Money to Pay Off Excessive Credit Card Bills
As mentioned above, putting as much money as possible towards your credit card bills will help to speed up the payoff process.
When you work full-time, you may have a job that is not commission-based, and you can’t increase your earnings throughout the year, even when you want to need money now.
You might be thinking about how to pay off credit card debt with no money.
But, there are ways to earn some extra money and save some cash to put aside for credit card bill payments and help you with the notion of how to pay off credit card debt.
From taking online surveys to becoming a personal shopper, side hustles offer an easy way to bring in some extra funds.
You can spend as much or as little time as you have available to you to work in a side hustle gig.Side hustles offer cash-earning opportunities, and many can even be accomplished in the comfort of your own home.
This is one of the tricks to paying off credit cards.
The following provides some tips to make extra, easy money and save it to put towards rotating credit card debt.
1. Take paid surveys online
You can make some extra money by taking surveys online.
Companies are looking for individuals to take their surveys and provide insight into various topics.
There are plenty of online survey sites to use to make some extra money to put towards high credit card debt.
Survey Junkie makes it possible to help companies make their products and brands better. See my Survey Junkie review here.
Even better? You’ll get paid to do so!
Using Survey Junkie is easy to do. Visit the site and set up your profile to get started.
Once you've signed up, you'll be matched with surveys that suit your profile.Fill out the surveys and earn points to use towards gift cards and PayPal payments.
SurveyClub is another online survey website to visit and take online surveys. See my Survey Club review here.
Paid research opportunities are at your fingertips with SurveyClub.
In addition to online surveys, SurveyClub users can sign up to get involved with local focus groups, private panels, and clinical trials.
Online surveys are a great way to make extra money and put your opinion out to the masses at the same time.
2. Use apps to make money
Another way to make money and then put those savings towards paying off credit card debt is to use money making apps.
Moneymaking apps such as Swagbucks and Rakuten (formerly Ebates) will help you earn some cash to put towards your credit card payments and help you figure out how to pay off credit card debt. See my Swagbucks review here.
Swagbucks is an online site and mobile app where you can earn money doing easy and enjoyable activities like getting paid to watch videos, searching the web, shopping online, and more.
When you earn a certain amount of points, you can cash them in for free gift cards or free PayPal money.
Another money-earning app to check out is Rakuten, which many know by the former name, Ebates.
Rakuten allows you to save money on a wide array of items while shopping.
Cash back sites, shopping deals, coupons, and other money-saving offerings can help you save money you would have spent on other things and put that cash towards paying off credit cards.
Rakuten has an easy-to-use app which makes saving simple as can be.
Whether you use the apps to earn money or save money, don’t miss out on these useful tools which will help you to pay down your credit card debts.
3. Deliver food and earn cash
You’ve probably heard of popular food delivery sites such as Uber and DoorDash where you can have food delivered directly to your door.
But did you know that you can earn money by delivering food to individuals in your local area?
Well, you can, and it’s a great side hustle option for those who don’t mind driving around town when hungry neighbors give a call.
When you sign up for Uber to deliver food, you’re your boss.
You'll make your schedule, decide what mode of transportation you'll use to deliver the food and start earning cash right away.DoorDash offers a similar option to those who want to make money to pay off credit card debt and sign up to be a food delivery person to do so.
DoorDash side hustles also allow you to work on your desired schedule, with long or short hours, and make money to put into your savings until you pull it out to pay off credit cards.
4. Take over the grocery shopping duties for others (and get paid!)
Let’s face it. A lot of us don’t like to do our grocery shopping.
It’s a tedious task, but a necessary one.
Fortunately, there are online grocery delivery services sites which individuals can use to have their groceries delivered to them.
For those searching for a way to make extra cash to pay down credit card debt, becoming a grocery shopper through Instacart is a great way to do so.
When you sign up to be an Instacart grocery shopper, you will be matched up with individuals in your local area who need groceries delivered to them.
Instacart shoppers go to the grocery stores, pick out the groceries, and then deliver the items directly to the customer.
You can decide what area you service as well as the hours you work.
Best of all? You’ll make good money working as an Instacart shopper.
As a result, you can take the money earned through this side gig and use it to pay off your credit cards, especially the ones with high-interest rates.
5. Start a blog and earn some cash
As you continue brainstorming ways to make some money to pay off high credit card bills, starting a blog might come to mind.
When you blog, you can provide helpful information to the masses and earn some money at the same time.
Ready to start your blog and earn cash for your credit card payments?
Try Bluehost to set up your blog today and earn savings to use towards your multiple credit card payments.
For just $2.95/mo, you can create your blog and make money from it. I started three years ago. Now, I make over $20,000 per month, doing it part-time.
Doing so will help you get out of debt and do so in a fun way!
6. Make money from real estate investing
If you have always been interested in real estate investing but never thought you had enough money to do so, you’d be surprised at the truth behind this all.
Individuals can invest in real estate for little money down and turn that investment into cash, money which can be used to pay off credit card debt.
Fundrise is a collective investment site which allows you to invest money in real estate and get a return on your investment.
You get to choose what your portfolio looks like and invest in those items which interest you the most.
As for possible payout from this type of collective investment, past investment history has shown an annual return of 8.7-12.4%.
Although you’ll have to put out some money in the beginning, you can look for a return from your investment which can be used to pay off high interest revolving credit card debt.
7. Earn money as Airbnb host
If you have extra room at home and want to earn additional income through a side gig, becoming an Airbnb host is an ideal notion.
Airbnb is a popular lodging option these days and is a relatively easy way to earn extra cash.
Whether you have an extra room to rent out for a few days here and there or have a rental home to rent out multiple times throughout the year, being an Airbnb host will put some additional money in your pocket.
8. Sell items on Amazon
People love buying things on Amazon, which means you can make money selling items on this popular website.
Whether you have items around the house that you don’t use anymore and others would love to purchase, or if you want to start an Amazon store with a particular product line, this selling site offers a great way to make some cash and pay off those credit card bills.
Not only will selling items on Amazon help you to make some money on the side, but it will also enable you to de-clutter your home and make room for new items.
How to Avoid Racking Up a Large Bill
Although you might think it’s too late to wonder how to avoid racking up a large credit card bill, it’s not.
Keeping the following tips in mind will be extremely helpful once you start paying off your bills and find yourself at a $0 balance on one or more of your credit cards.
Taking steps to avoid a hefty credit card debt will make you less stressed and still able to spend money but doing so wisely.
Here are some ways to keep your credit card bills low:
1. Pay Cash
The first tip for avoiding a large credit card bill is to pay cash for your purchases.
You may not be able to pay cash for all of your necessities and extra goodies that you buy.
However, if you can do so, paying cash on as many purchases as possible will help to preserve your credit limit and keep debt low.
2. Use credit cards with low-interest rates
For those times when credit card usage is necessary, pick the credit card with the lowest interest rate and use that credit card to pay for your item.
You might even find that you are lucky enough to have a zero-interest rate card which hasn’t been used yet. Click here to learn more ways on how to pay off debt.
Although this type of credit card is usually only zero-percent interest for a limited time, you might still be in that window and able to make your purchase and pay it off before the interest rate accruing.
3. Pay for an item on your current card and do a balance transfer
You may have just one credit card to work with and find yourself having to purchase with that credit card.
If that’s the case, you can make the purchase and then soon after that get a new credit card offering zero interest for balance transfers.
This will ensure that your interest rate attached to the first credit card won’t continue to add up and you can pay off the purchase on the new card with no interest.
4. Pay attention to your budget
When you keep an eye on your budget, this will help you not to spend more than what you have carved out for each month. Click here to learn about Dave Ramsey tips.
You can stick with your budget, which will make it less likely that you will use your credit card for unnecessary purchases.
Also, your budget should be based on cash payments and no credit card payments, so everything in your budget as of now will be a cash-based payment each month.
Having a budget keeps credit cards out of the picture.
5. Only use credit cards in emergencies
If you have a budget and cash is the payment source, you should only be using your credit cards in emergencies.
For example, if you need to purchase a new washer or dryer or you have expensive repairs to make on your car, you can use your credit cards for these high payment situations where you don’t have enough cash in the bank to cover them. Click to find how to find the cheapest car insurance.
Should you need to use your credit cards for any emergencies, use your credit card with the lowest interest rate whenever possible.
6. Don’t use credit cards for impulse buys
Some individuals find it easy to rack up their credit card bills due to impulse buys.
Maybe it’s a new tool or a nice pair of shoes you’ve had your eye on.
Although it’s straightforward to pull out your plastic and say, “Charge it!” don’t do it.
This impulsive purchase will come back to haunt you later on.
Sure, you might have a new item which you adore, but your credit card bill is something you won’t be too fond of.
How To Pay Off Credit Card Debt: Conclusion
Paying off credit card debt can be a challenge and hard, but it’s not impossible. With smart ideas, realistic expectations, and the will to pay it off, you’d be on your way to solving your debt problem.
All you need to do is start.
Are you ready to pay off your debt? What is the greatest challenge you think you’d face when paying this debt off?
