Pay Off Credit Card Debt

Average US credit card debt: $6,500 at 22.99% APR. Making only minimum payments (typically 2% of balance or $25), it takes 17+ years to pay off and costs $9,800 in interest — more than the original balance. The avalanche method: list all cards by APR from highest to lowest, pay minimums on all except the highest-APR card, throw every extra dollar at that top card until it is gone, then move to the next. This saves the most money mathematically. The snowball method: same process but ordered by balance (smallest first). You pay slightly more in interest but get faster wins that build momentum. Balance transfer strategy: transfer high-APR balances to a 0% intro APR card (typically 15-21 months). Pay aggressively during the 0% period. Warning: if you do not pay it off before the intro period ends, the remaining balance often gets hit with 20%+ APR retroactively. Do not close paid-off cards — your credit utilization ratio improves when you have available credit, which helps your credit score.