How to Manage Credit Card Debt

Written by S.Subramanyam   // June 7, 2011   // 5 Comments

Photo by Marfam

“How to eliminate your credit card debt”, “How to pay off credit card faster” etc, are the topics of discussion in most of the talk show and forums in the recent days. According to the statistics from, the average credit card debt per household  is $5100 and expected to rise to $6500 by the end of 2011. So, it is vital to talk about how to manage credit card debt and keep finance under control.

A huge portion of the population carries a balance on credit cards from month to month. According to a survey conducted by Federal Reserve, total credit card debt on store or gas credit cards is about $105 billion. Although debt can be overwhelming, it is possible to lower your balances and become debt free.

Here are few tips on how to manage credit card debt and pay off your debt;

1)      Budgeting: Know what comes in and what goes out. Understanding personal financial situation is a group effort. Get the family together and spend an evening or so making a budget. Budgeting can be done on a monthly or a yearly basis. Key in all your planned expenditure on a spreadsheet and the actual income that everyone brings in. Talley the balance to make sure the total expenditure doesn’t exceed the total household income. If the expenses are more, then you have to come up with a plan, as a family, to cut down the unwanted expenditures. offers different budgeting tools to help consumers track their financial well being.

U.S. Department of Labor Bureau of Labor Statistics provides Consumer Expenditure Survey to get an overview of the spending habit of other families within the same income brackets.

2)      Make Cash Purchase: Stop using credit cards for day to day purchases. The simplest advantage to paying with cash is the limitation it puts on what you buy. Without a buy-now-pay-later mentality associated with credit cards, you will purchase only items that are affordable and covered by the cash you have on hand.

3)      Pay on time: Paying your bills on time is one of the crucial things you can do to avoid damaging your credit. Even if it is just the minimum payment, try to pay it off before the due date. This will be possible only if you have few credit cards. A large number of credit cards can cause a difficult situation to manage as your credit debt grows. The more cards you have, the more likely it is that you will simply miss seeing a bill and making a payment. Also, it is always better to pay the full balance rather than aiming for the minimum payment

4)      Pay off high interest credit cards: Try to pay off fully the balance on high interest credit cards. Interest on the unpaid balance keeps growing leading to an impossible situation to pay it off. Try to borrow enough money on low interest credit cards to pay off the debt on all other high interest credit cards.


  1. By JohnDough, February 23, 2019

    I think these are great suggestions for managing credit card debt. Offhand I think budgeting strikes me as the most important of all them. Having and maintaining a “Debt Notebook” will tremendously help with budgeting and depending on how detailed the notebook is, give insight on spending habits and areas where revenue can be increased. Great article Sally!

  2. By Tax-y Lady, February 23, 2019

    I have also found that saving sites like are an excellent option for larger purchases/expenses. Basically, if you can’t afford it out of one paycheck, you can save for it ahead of time. Smartypig even allows others to contribute to your goals (if you want to make them public). This is great for bigger things like planning a wedding, getting a 3D TV, a trip to Europe, or whatever else you may want. I sue this with my 12 year old so she can learn the value of paying for something out of pocket rather than on credit.

  3. By Nadeem, February 23, 2019

    I too agree that these are all pretty good suggestions, especially paying on time. Timely payments will save you from unnecessary charges which can affect you balance vigorously if you have a huge balance. On time paymens can also boost your credit scores quickly.

  4. By JohnDough, February 23, 2019

    I think that paying cash is also helpful, especially if you are like some of my friends who whip out the plastic for small purchases like coffee.It’s okay if you pay off the balance each month, but small purchases add up fast.

  5. By Victor, February 23, 6266

    From my experience I can say, there are financial calculators which show you in detail how to payoff any loan early. The calculator which I use is ” Smart Loan Calculator Pro ” which is available in app store for 2 bucks. It is awsome. It is not for one time. It is life time useful smart calculator. Give it a try. I guarantee, you would thank me after you download and check it. After checking this, I realized how easy to payoff martgage early.


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