54 Million Americans Struggling with Credit Card Debt: Best Payoff Strategies

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Are you struggling with credit card debts? We have some tips to knock your balance down.

1. Snag a 0% balance transfer credit card

"My top tip is to sign up for a 0% balance transfer card," Rossman said."These allow you to avoid interest for up to 21 months, and that's a tremendous tailwind that can power your debt payoff journey." are one of the best weapons Americans have in the battle against credit card debt, added Matt Schulz, LendingTree's chief credit analyst.

To make the most of a balance transfer, aggressively pay down the balance during the introductory period. Otherwise, the remaining balance will have a new annual percentage rate applied to it, which is about 24%, on average, in line with the rates for new credit, according to Schulz. Further, there can be limits on how much you can transfer and fees attached. Most cards have a one-time balance transfer fee, which is usually around 3% of the tab, but there can be an annual fee for the card, as well.There are two ways you could approach repayment: prioritize the highest-interest debt or pay off your debt from smallest to largest balance. Those strategies are known as the avalanche or snowball method, respectively.

 

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