The Best Ways to Reduce Credit Card Debt

There are many ways to reduce credit card debt, and understanding what is right for you can be overwhelming. Some of the common debt reduction methods have negative long-term consequences. Establishing and maintaining better spending habits is always the best way to reduce debt.


Budgeting is very important, especially if you are trying to pay down debt. You must know exactly what is coming in and what is going out. Once you have an idea of your finances and how much disposable income you have left, you can designate a set amount for your debt repayment.

Snowball Method

The snowball method is a popular way to pay down debt yourself. You determine how much you can spend every month on debt repayment. Then you pay the minimum on all cards but the one with the lowest balance. For the lowest one, you pay the minimum plus whatever is left in your budget. Then when it is paid off, you do the same on the next card.

Alternative Debt Reduction

There are many other ways out there to reduce debt, but they will be detrimental to your credit. Bankruptcy remains on your credit for seven to ten years. Also, debt reduction through your credit card company or a third party will be harmful to your credit since the accounts will not be paid as agreed upon.

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