As we settle into the new year, I want to make sure that those of you with credit card debt are not falling into a hurtful cycle of shame and blame. I know that’s all too easy to succumb to. Especially if you allowed yourself to overspend for the holidays and are now facing the big credit card bills for that choice.

 

But let’s agree: beating yourself up doesn’t help one bit. It doesn’t tackle the credit card debt, and it just makes you feel crappy. You are too strong and too determined to fall into that trap.

 

So let’s talk about how to take control of your credit card debt.

 

Stand in your truth. Is the debt to cover needs or wants?

 

If it is for needs, such as covering a health insurance deductible, or groceries, or the higher home or auto insurance premium that is happening all across the country, then my advice is to take a deep breath and remind yourself: this is your problem, but it is not your fault. You are using credit card debt to keep your household running and safe.

 

Now, if your credit card debt was for buying “wants”—even if those wants were holiday gifts for loved ones—then you have some serious internal work to do. There is simply no “want” that is worth paying 22% interest on. And that is the average interest rate being charged on credit card balances these days.

 

If you think you must shower loved ones with gifts you can’t afford, you have lost sight of what matters. The good news is that it’s entirely up to you to take a deep breath and turn the page: no more spending on wants that will leave you with credit card debt. I think once you embrace this, your life will become more manageable.

 

Have a strong credit score? Look for a balance transfer. If your credit score is at least 740 or so, you may be able to qualify for a new credit card that will allow you to transfer the balance on your existing credit card(s) and then will give you a grace period of 15-21 months or so during which that balance will not be charged any interest. (Any new charges on your transfer card will be charged interest.)

 

Having 15 months or more to pay down debt interest-free is a huge deal. It will make it so much faster to pay off the balance. In fact, your goal should be to make enough payments to get the balance to zero before the initial zero-rate period expires. Search online for “balance transfer credit card deals” to find rankings of cards that offer the best terms.

 

If a balance transfer isn’t in the cards, let’s focus on how to tackle the debt on the cards you have:

 

Pay the minimum due on every card on time. If you have managed to stay on time with payments, keep that streak alive. It is so important to always pay at least the minimum, on time, every month. That one decision plays a big role in your credit score.

 

Pay more on the card with the highest interest rate.  From a financial standpoint, the smartest move is to pay more than the minimum on the card that is charging you the highest interest rate. How much more? That is up to you. If you happened to get a year-end bonus, well, this could be a great use of that money. If you typically receive a tax refund, the sooner you get your taxes filed and receive the refund, that’s money you can put toward your debt. And if it’s been a while since you carefully and honestly reviewed your spending—especially the automated online subscriptions we tend to forget about—I bet there is some extra money you can cut from spending to put toward your card debt.

 

Once the card with the highest debt is paid off, take all the monthly money you were using to pay down that card, and start using it to pay down the next card with the highest interest rate. That will speed up the repayment of that debt. If you have more credit card debt, repeat this with the third card, once the second card is paid off. But remember: pay the minimum on every card, every month.

 

An important note: While focusing on the card with the highest interest rate makes the most financial sense, I know some of you may want to tackle the card with the smallest balance, because it is a more achievable goal. I hear you. And if that is what feels right to you, and what motivates you to make 2026 the year you take control of your credit card debt, then that’s the right strategy for you. If you need that psychological momentum to stay committed to paying down credit card debt, then that’s the truth you should stand in. All I ask is that once you find yourself with plenty of momentum, maybe step back and think through if you’re ready to focus on the card with the most expensive debt. It’s going to save you plenty.

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    Categories: Credit & Debt, credit cards, debt