According to a report from the Federal Reserve Bank of New York Americas total credit card balance was $1.166 trillion in the third quarter of 2024, that’s up from $1.142 trillion in the second quarter. It is the highest balance since the New York Fed began tracking in 1999.

It is very easy to quickly accumulate credit card debt and once people reach a high debt level, they may feel overwhelmed and powerless to pay it off, but we all have the power to control our own financial situation. This may require reevaluating your spending habits and creating a financial plan to reduce spending and pay off your debt.

Here are some steps you can take to regain control and pay off your credit card debt.

Put the Card Away

Once you are buried in debt you need to put the credit card away and stop adding to the balance, setup a budget and eliminate all unnecessary expenses, differentiate your wants and needs. Food and rent are needs, streaming services, dinners out and entertainment are wants and can be eliminated or reduced until you are in good financial standing. Most credit card issuers compile a year-end summary report that categorizes what you are spending your money on, review the report to get an idea of where your money is going, this will help you decide which areas of spending are unnecessary.

Contact Your Credit Card Company

Call your credit card company and ask for a lower interest rate. Getting the rate reduced by even a few percentage points will help. Many providers are willing to lower your rate if they know you are actively trying to pay off your balance.

Some issuers offer a credit card hardship program, typically it is a payment plan that you setup with them, they may waive fees and lower interest for a certain period of time. Not all issuers offer this type of program but if yours does it is something worth investigating.

Research Balance Transfer Deals

Look for a reputable credit card that offers 0% intro APR. Transferring to a 0% APR credit card could help you save hundreds or thousands of dollars in interest and may help you get out of debt faster. Look for a card with no annual fees and low or no balance transfer costs. Most of these cards give you 12-18 months of no interest so work hard on paying off your debt during that time.

Any Amount Will Help

Don’t get discouraged if you have a large balance, the worst thing you can do is give up and stop making payments or pay only the minimum amount. Look for ways to eliminate spending and take the money you are saving and put it toward your debt.

Look For Ways to Earn Extra Money

Look for ways to earn extra money, this could be a part time job or selling unneeded possessions or even moving to a less expensive home or rental. Any additional money you bring in can help you get out of debt faster.

Pay with Cash

Paying with cash will eliminate paying interest, which is a huge part of credit card debt, it also makes you more aware of your spending. If you don’t have the cash to pay for it, you don’t buy it.

Use Any Extra Money

Use any extra money you come into to pay off the debt, this can include income tax returns, salary increases, inheritance money, and work bonuses.

Debt Snowball & Debt Avalanche Method

If you have multiple credit cards, you might consider either the debt snowball or debt avalanche methods of payment. The snowball approach involves paying off the smallest cards first and then moving on to the next smallest until you have paid them all off. The Avalanche method is when you pay off the card with the highest interest rate first and then move on to the next card with the highest rate until you are debt free.