People Are Sharing How They Paid Down Their Debt Over Time, And We Should Normalize Talking About This Openly And Often
With inflation on the rise, it's never been easier to charge groceries, that concert ticket, and maybe even rent on your credit cart. This is all fine and dandy if you're actually paying what you owe back in a timely manner, but if high interest and spending are growing your credit card balance to anxiety-inducing heights, this type of dangerous debt can feel like an uphill battle you're never going to win.
NBC / Via giphy.com
The bad news is, credit card debt can be a tough abyss to come back from. According to Bankrate, the average American has three credit cards and nearly $6,000 racked up in debt. The good news is if this sounds familiar (and even if your balance is much higher), you aren't necessarily doomed. Don't file for bankruptcy just yet. Climbing over the hurdle that is credit card debt takes work — but it's done every day.
NBC / Via giphy.com
With a solid plan in place, you can find the most effective way to free yourself from the shackles of high-interest debt. If you need a little motivation, these Reddit commenters are sharing how they paid off their balance.
(Note: Everyone's financial situation is so different — and no solution is one-size-fits-all.)
1."I've had credit cards since I was 18, and I'm 28 now. Through unfortunate times, bad decisions, and a job loss, I racked up $20,000 through my cards in 2020-2022 and felt defeated, depressed, and at the end of my rope. I made a conscious decision to get myself out of the hole I had dug. After a makeshift spreadsheet with all my cards laid out, a budget, sacrifices, and intense work, I finally made my last payment today."
ABC / Via giphy.com
"After going through that experience, I will never again give a dime in interest to credit card companies. I still have a car loan and some student loans to tackle, but my resolve has never been stronger! I look forward to responsibly utilizing the cards I have, and reaping some of the great benefits. (In case anyone's wondering, I had an income of about 45-50k throughout this process)."
—u/smiththejedi
2."I paid off almost $20,000 of credit card debt that I had accumulated over the years. I made some really poor financial choices, despite coming from an upper-middle-class family and never ever lacking anything. I learned from my mistakes the hard way. Never again will I make the same mistakes."
"I don’t know who needs to hear this, but please make sure you handle your credit cards and overall finances with responsibility. Money is not everything, and it doesn’t bring happiness, but it does make your life easier when you have your finances in order. Don’t get into debt! Live within your means."
—u/Bruxa1111
3."I carried maxed cards for nearly 15 years. I defeated them all in about two years of concerted effort. I got my bank account to a place where I was secure in never getting an overdraft. Once that was established, every single week, I logged in to all my credit card accounts and paid down whatever I had spent that week. I still used my cards for the points, but I no longer held new balances. Once I paid everything I spent that week, I would see how much was left in my bank account and would dump it on whichever card I was targeting at the time."
"By watching and focusing on my spending, being responsible for paying what I owed, and throwing everything else I had right into debt, I was able to move quickly. Getting a few hundred bucks on to my standing balance every week moved quickly. Every zeroed account was celebrated. Failure was not permissible. I continue these practices now and have put a fair amount of money into my emergency fund, savings, and even some investments."
—u/rassmann
4."I used a debt management company to get out of $60,000 credit card debt. Got on a five-year plan, credit took a big hit, and four years and eight months later, I was debt free. That was in 2020. At the end of 2021, bought a house."
—u/riceburner22
5."After buying my house three years ago, I racked up $50,000 in debt. I was so stressed out! I have a great income, and all my money was going to these bills. I was watching the market and the value of my home and also watching my credit score to get it good enough to take a cash-out to refinance. Finally, I closed on my refinance and was able to pay off $45,000 of it."
Bravo / Via tenor.com
"Since then, I’ve closed down crappy cards and opened high-tier ones and am watching my spending like a hawk. Now, I don’t charge anything without a plan to pay it off."
6."I had been chipping away at my credit card debt for a while and got a 0% for 18 months deal — and was able to transfer all of my remaining debt to that card. The trick is to never use the card you transfer the balance to, pay it on time every month (or they'll start charging interest), and pay it like a bill. Decide how much is going to that card every month and do what you have to to make it happen."
"It also helps to write down the balance somewhere you're going to see it and subtract your payment each month to help keep you motivated. Also, be aggressive with the amount you're paying. Don't transfer your balance and think it's next year's problem. That's how they get you."
7."When I was younger, I got my first few credit cards, and because I saw that I had credit available, I bought what I wanted even if I didn’t need it. In a short time, my credit cards were maxed out to the tune of almost $10,000. I lived paycheck to paycheck for a while because I could only afford to make minimum payments."
"Finally, last year, I got everything paid off, and I don’t buy anything unless I need it and can afford to pay it back immediately. I now have almost $40,000 in available credit and maybe a $1,000 balance (I was on vacation last week) which will be paid off next week. Being free from debt is such a liberating feeling."
—u/[deleted]
8."I paid off $15,000 in credit card debt. Basically, I cut my expenses, quit drinking, budgeted better for luxuries, got a steady job I could tolerate, regularly paid 1/3 of my paycheck and all extra money [toward my cards], and moved my debt to a lower-interest credit line. It was mostly just a lot of grinding and trying not to focus on the size of the debt overall."
—u/Dash_Harber
9."What worked for me was a little handwritten log book where I dedicated a page to each card, with total owed, balance ratio, and interest rate. Then, I attached a gleeful feeling to crossing out the old numbers and replacing with the new lower totals."
"Every time I paid extra, I was very happy. I didn't have a specific timeline or goal other than eventually writing zero. I just focused on how satisfying crossing out the numbers became."
—u/blancaloma
10."I maxed out balances on some very high-limit cards, so I looked into a personal loan with a payoff of five years. The personal loan amount covered [the entire debt], and the payment was less than all the minimum payments on the cards. If you pay the minimum payment for five years, you wouldn't pay it off. However, if you pay the loan payment for five years, you pay the loan off."
NBC / Via tenor.com
11."[To pay off my debt], I've done plasma donations. I got $900 for eight donations total, and that knocked out one whole card for me. I don’t love donating plasma, but the money can add up quickly if you’re willing to stick with it. Even just picking up a second job. I was a lifeguard and swim instructor before I got my current job, and I still can work 4-15 hours a week at the pool. It can get me an additional $500 a month sometimes."
"It definitely sucks packing your schedule with that kind of stuff, but being able to knock out credit card debt more quickly makes it a bit easier to put up with. I got my higher salaried position in September, and I started to tackle the $6,000 of credit card debt that I had, and I’m down to $1,000 with decent savings, too."
12."I took a loan out when I was $15,000 in debt. Stretched payments over three years with low interest and really hunkered down with my expenses. Ended up paying it off way early. Just had to get out from under the crippling interest rates."
13."I am 30-year-old male, and I once had the bare minimum credit score, due to poor utilization and understanding of [credit cards]. Currently, I am at a steady 820. My recommendations would be to pay off cards in full at the end of each month and keep your credit cards at 1%-10% utilization."
"If you have many credit cards and are struggling with paying them, ask your bank and see if you can get a consolidated loan with a lower interest rate that way you can pay off your debt without losing money. Most banks have systems in place where you can get 0% interest for the first six months for consolidating a loan through them."
14."I had about $20,000 that I paid off years ago while I was making about 60k per year. I was also considering bankruptcy because the balance just kept going up, and my credit score was tanking. For a couple of years, I was doing a combo of the snowball and avalanche methods. I finally got sick of it and took out a personal loan. That was a game-changer. In retrospect, I wish I had shopped with FCUs because my interest rate was 11% and likely could have been lower. But that gave me one monthly payment and zeroed out my cards. Also slingshotted my credit score into the 700s because the bureaus treat installment loans favorably and revolving credit unfavorably."
"The interest and savings were obviously big, but the most important thing to me was that it put me in a frame of mind where I could treat my credit card like a debit card — watch my transactions like a HAWK and pay them all off every month. No exceptions. I started compulsively checking Mint the way that some people check their notifications. At least for me, seeing the balances at zero and feeling that relief for the first time in years made the cards feel completely different and made it way easier to use them responsibly."
—u/fauquier
15."Just paid off five credit cards: four of mine and one of my wife's. It's been a long time coming, and we were finally able to get that final push across the finish line with refinancing our house, keeping our monthly payment the same, and lowering our interest rate by 1.5%."
Nickelodeon / Via tenor.com
—u/kekti
16."I got a $20,000 personal loan to consolidate my high interest debt. Credit score is 760, and my loan is at 5.2%! This was January of 2022, but most of my credit cards had APRs between 16%-24%. Definitely worth it. My $20,000 owed is now down to $14,000, and I can breathe."
—u/JenNovaaa
17."I was about $14,000 in debt as a single parent with an infant, making roughly $35,000 a year. What I did was stop cross spending, using both my credit card and my debit card, and cut everything that was not necessary."
"I took all the money that I was paying toward all my credit cards and started dumping all the extra cash into the personal loan. I didn’t use the excuse that I had a lower interest rate to slow down my progress. [My] six-year loan was paid off in about two years, and I paid much less in interest."
18."It has taken 10+ years to do it, but I am free of any and all credit card debt...finally! To anyone considering getting one or more new credit cards, use caution and only buy the stuff you can afford."
19."Worked extra hours this year. Paid off $30,000 credit card debt. Now, I’m debt free but for the mortgage. Happy days for me!"
Disney / Via tenor.com
—u/Qylere
Note: Some submissions have been edited for length and/or clarity.
