Writer: Marcie Geffner
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
Key Takeaways
The Debt Snowball and Debt Avalanche are two proven ways to pay off credit card debt over time. Balance transfer cards can also help you reduce your interest for a set period, and our experts have identified the best options:
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BankAmericard® credit card: Best for a long interest-free period to pay off debt.
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Discover it® Chrome: Best for earning cash back along with a long balance transfer promotion. See rates & fees
Unwanted credit card debt can feel overwhelming. Having a plan to pay it off and knowing which card you should pay off first can help you feel more in control of your finances and improve your financial situation.
The first step is to make a list of your cards with your current balances and the annual percentage rates (APRs) you’re currently paying. If you don’t know your APRs, check your most recent monthly statements or contact your card companies for this information.
Once you’ve made your list, you’re ready to identify which card to pay off first.
The Debt Snowball vs. the Debt Avalanche
Conventional wisdom offers two approaches to make that decision. They’re known as the snowball and the avalanche methods.
The snowball approach advises you to pay off your lowest balance card first. Once that card is zeroed out, you move on to your next smallest balance, then the next smallest, and so on.
This approach gives you the satisfaction of repeated successes as you pay off your relatively smaller balances. Those easier wins can be enticing. The downside is that you’ll likely pay more interest with this approach.
The avalanche approach advises you to pay off your highest APR card first. Once that card’s zeroed out, you pay off the card with the second-highest APR, then the third-highest, and so on.
If you have higher balances on your higher APR cards, this approach may take longer before you achieve your first, second, and third wins. If you’re willing to forgo that enticement, this approach can save you a significant amount in interest expenses.
Which method is best to pay off card debt? The snowball gathers speed over time, but in the long run, the avalanche should help you pay off more debt sooner. That’s because paying less interest by eliminating your higher APR cards first frees up additional money you can use to pay off your lower APR card balances faster.
In terms of your finances, the avalanche’s lower interest expense is worth more than the snowball’s early motivational boost.
Consider Combining the Snowball and Avalanche Methods
If you’re still not sure which card you should pay off first, you may want to try a combination of the two approaches. You alternate between the snowball (smallest balance) and avalanche (highest APR) with this option.
For example, you may want to start with the snowball method to score a quick win or two, then switch to the avalanche method to eliminate your highest APRs. You can then continue to switch between the strategies or stick with whichever method you prefer.
The pitfall of this third way is that giving yourself additional flexibility may result in you not having a plan at all or not being able to stick with whatever plan you devise. Don’t let flexibility become an excuse to make random higher payments on multiple cards or abandon your specific goal of paying off one or more of your cards.
Make a plan you feel you can stick to even if a little flexibility is built into it.
The Peril of Only Making Minimum Payments
Regardless of which card you choose to pay off first, you should always make at least the minimum payment for every card you have and pay it on time. This helps you avoid late payment charges and higher penalty rates.
If you don’t make your minimum payments on time, the charges and rate penalties could slow or derail your plans to pay off specific cards.
Keep in mind that paying only the minimum due will extend the time you’ll need to pay off those cards and the total amount you’ll have to pay to zero out your balances. That’s because minimum payments typically aren’t enough to cover all the interest you owe or any of the balance.
The interest you don’t pay doesn’t go away. Instead, it’s added to your balance.
That means your balance will go up even though you paid the minimum due and even if you don’t make any new purchases. You’ll also be charged additional interest on the unpaid interest from the previous month.
This minimum payment pitfall adds weight to the argument that the avalanche method (highest APRs first) has a clear advantage over the snowball method (smallest balances first).
Before You Start Paying Off Your Cards
Once you’ve identified which card to pay off first, you’ll need to figure out how much more than the minimum amount due you can afford to pay each month. To determine that, take a look at your income and expenses, including all of your minimum card payments.
If you don’t have much extra, try to identify new sources of income, such as a pay raise, a higher-paying job, or a side hustle. Selling stuff you no longer use online may also bring in some extra cash. Look for expenses you can cut back, such as takeout meals, streaming services, impulsive fast-fashion purchases, or pricey vacations.
Don’t put off necessary medical appointments or maintenance to your home or car that, if neglected, could cause more expensive problems in the future. Emergency savings should also be a high priority so you won’t have to borrow when a crisis occurs.
If you need a nudge in the right direction, we created this interactive tool to help you make a plan to pay off debt:
You’ll also have to commit yourself to stop using your credit cards because using them will pile on debt while you’re trying to do the opposite. Make a pact with a friend or family member you can call to top up your motivation if you’re struggling with not using your cards.
If you’re experiencing a severe but temporary financial hardship, such as unemployment, short-term disability, or the death of a close family member, you may want to contact your credit card companies and ask for a lower payment, lower rate, or forbearance program until you recover from your hardship.
If your hardship is permanent or you simply don’t have enough income for essentials, emergency savings, or the minimum debt payments, you may want to ask your card companies about debt repayment plans.
Typically, your card accounts will be closed and your credit scores will be lower for a while, but a repayment plan can make sense for some people.
If your debt feels overwhelming, don’t ignore it. Make a plan to start paying it off in whatever way you can.
Transfer Balances to Avoid Interest
Balance transfer cards can help you avoid expensive interest charges. As the name implies, these cards allow you to transfer an existing card balance from one card to another. The transfer usually comes with a lower or even 0% interest rate for an introductory period that may last a year or longer.
- 0% Intro APR for 21 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 15.24% – 26.24% will apply. A 5% fee applies to all balance transfers. Balance transfers may not be used to pay any account provided by Bank of America.
- No annual fee.
- No penalty APR. Paying late won’t automatically raise your interest rate (APR). Other account pricing and terms apply.
- This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.
Additional Disclosure: Bank of America is a CardRates advertiser.
- Get a 0% intro APR for 18 months on balance transfers and 0% intro APR on purchases for 6 months; balance transfer fee applies. Then 17.74% to 26.74% Standard Variable APR applies, based on credit worthiness
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. You’ll still earn unlimited 1% cash back on all other purchases
- Redeem cash back for any amount
- No annual fee
- Terms and conditions apply
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
- Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category.
- Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
- No annual fee and cash rewards don’t expire as long as your account remains open.
- Turn daily purchases into everyday wins. Simply use your Customized Cash Rewards credit card for the things you already buy – from gifts to groceries – BofA Rewards™ members earn more cash back.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 17.74% – 27.74% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 5%. Balance transfers may not be used to pay any account provided by Bank of America.
- This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.
Additional Disclosure: Bank of America is a CardRates advertiser.
- 0% Intro APR on balance transfers for 21 months and on purchases for 12 months from date of account opening. After that the variable APR will be 16.74% – 27.49%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
- No Annual Fee – our low intro rates and all the benefits don’t come with a yearly charge.
- Buy now and pay later. Split your payment for eligible purchases of $75 or more into a fixed payment with Citi® Flex Pay.
- Get free access to your FICO® Score online.
Additional Disclosure: Citi is a CardRates advertiser.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.49% – 28.74%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Additional Disclosure: Citi is a CardRates advertiser.
That lower rate lets you free up cash to pay off debt sooner. And, this benefit works with either the avalanche or the snowball method. A balance transfer card may also give you a rewards program or other valuable card perks or benefits.
There are a few caveats:
- You’ll typically need good or excellent credit to get approved for a balance transfer card.
- Opening a new balance transfer card account can lower your credit scores.
- If you close the account from which you transferred the balance, your credit scores may drop due to a higher credit utilization ratio.
- Balance transfer amounts are usually capped, so you may not be able to transfer your entire existing balance (or balances) to one new balance transfer card.
- Balance transfers usually involve a fee.
- Your balance transfer card’s APRs will go up when the lower or 0% rate period ends.
- You may have to make large payments to pay off your balance within the introductory period, even with a lower or 0% rate.
Despite these conditions, balance transfer cards can help you consolidate debt, pay less interest, combine multiple payments, and pay off debt sooner. Be sure to shop around and compare offers before choosing a balance transfer card.
The Choice Is Yours
With multiple strategies to pay off card debt, choosing which card to pay off first may ultimately turn out to be a personal decision.
The most important point isn’t which card to tackle first, but having a plan to tackle that first card and then all your cards, one by one, until you achieve debt payoff.
Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
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