How to Pay Off Credit Card Debt the Fastest Way

The fastest way to clear credit card debt is to pay the minimum on every card and put every extra amount toward the card with the highest interest rate until it's gone. Credit card interest is among the most expensive borrowing you'll face, and it builds up every month. That's why paying it off usually comes before most investments: it's hard for the stock market to give you a guaranteed return as large as the interest you save by closing an expensive debt.

Two well-known methods

The avalanche method starts with the highest-interest debt; the snowball method starts with the smallest balance. The avalanche saves more money; the snowball feels better because you get a quick win. If the interest rates on your debts are close to each other, start with the smallest balance to keep your motivation up.

The steps

1. List every debt: the balance, the interest rate and the minimum payment.
2. Pay the minimum on every debt, without exception, to avoid late fees.
3. Put every extra amount toward one debt only until it's paid off.
4. Roll the payment you've freed up into the next debt on the list.

Stop the bleeding first

There's no point paying down debt with one hand and borrowing with the other. Take the card out of your wallet and delete its details from online stores until you've finished paying it off.