Two methods experts recommend to take control of credit card debt

CHARLOTTE — Credit card debt hit an all-time high at the end of 2025, with the average cardholder owing nearly $8,000.

Consumer advisor Clark Howard said several strategies could help you cut debt and take control of your finances. But it can take a while to hit the goal of being debt-free.

Many people use credit cards for cash back, travel rewards, and points to benefit their wallets. But if you don’t pay off monthly balances, interest can eat up those coveted rewards, defeating the purpose of the card.

“The first thing I want you to do is literally put your credit cards in the deep freeze,” Howard said. “I got a freezer bag here, and I’m going to fill it with water, for real. And then they go in the freezer where they stay until you’ve paid every last penny you owe.”

Howard says to go old school — pay with cash or use a debit card until you get your finances in check. And keep an extra eye on your bank account.

Grab your credit card statements, write down the total amount owed and interest rate for each card, Howard says. Then use either the snowball or avalanche method.

For snowball, pay off the balance with the least amount first and continue minimum payments on the others. By wiping out one of the cards, you can keep up the motivation to keep paying off debt, Howard said.

“But my favorite is the avalanche,” Howard explained. “Because you’ll pay the least amount overall, and the lowest amount of interest.”

You find the card with the highest interest and pay off as much as you can while continuing to make minimum payments on other cards.

Tara Alderate with Money Management International, a non-profit credit counseling agency, said that on average, they can help reduce your interest rates to the single digits, sometimes even down to zero, allowing you to pay that debt off quicker.

“I think the best thing to do is reach out as early as possible and say, ‘ Hey, this is getting a little bit out of control,’” she said.

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