How to Get Out of Credit Card Debt

blog illustration image

For many, credit card debt starts with small, seemingly manageable purchases. Over time, these purchases accumulate, turning into a mountain of debt that can feel overwhelming. This common scenario is one that countless Americans face, leading to stress and uncertainty about how to regain financial control. With the right strategies and guidance, overcoming credit card debt is achievable.

Create and Follow a Debt Management Plan

For most people, creating and adhering to a debt management plan is the first step toward getting out of debt. Through our certified credit counseling partners, the National Foundation for Credit Counseling (NFCC) offers personalized assistance in creating a plan that fits your unique financial situation.

A debt management plan isn’t a loan—it’s a strategic approach coordinated by NFCC, a nonprofit credit counseling agency. It offers benefits like reduced or waived finance charges and fewer collection calls and ensures your accounts are credited with 100% of the payments you make.

Completing your payments and repaying your debt in full and according to plan may even help re-establish your credit. An NFCC Certified Credit Counselor works with you to determine if a debt management plan is your best option or if other strategies are more suited to your circumstances.

Assess and Organize Your Debt

As part of your debt management plan, you need to have a clear understanding of your debts. Organize your credit card debts by interest rates and balances. A little planning and organization will help in prioritizing which debts to pay off first, a key strategy in your debt management plan.

Develop a Realistic Budget

A critical step in your debt management plan is creating a budget that realistically reflects your income and expenses. Your budget forms the foundation of your debt management plan, helping you determine how much to allocate towards debt repayment each month.

Increase Income and Reduce Expenses

As you follow your debt management plan, look for ways to increase your income and decrease unnecessary expenses. The more you can redirect towards your debt, the faster you will see results. This may involve cutting back on luxuries, finding a part-time job, or doing a side gig.

Avoid Accumulating New Debt

It’s important to avoid accumulating additional debt as you follow your debt management plan. One of the best ways to do this is by using cash or debit cards for purchases and resisting the urge to open new credit lines or make discretionary purchases on credit.

It’s Time to Get Your Bills Back on Track—Contact NFCC Today

Overcoming credit card debt is a challenging but deeply rewarding journey. It requires a clear plan, discipline, and, sometimes, a guiding hand. NFCC and our network of credit counseling agencies are here to provide that guidance. Our certified partner credit counselors offer one-on-one help, tailoring a debt management plan to your unique needs and helping you navigate each step. Don’t let debt control your life any longer. Call us today at (800) 388-2227 and start your path to a financially free future.