Credit card debt is a huge problem. In fact, the average American household with at least one credit card carries a balance over $15,000.

There are varying causes of credit card debt, such as overspending or living beyond one’s means. In a world of instant gratification and impatience, it’s easier to swipe a credit card. But credit cards aren’t entirely bad.

Maybe you need new tires, car brakes or need to pay for other kinds of car repair. If you do not have cash in the bank, a credit card can get your car back on the road.

But if you’re unable to control your spending and use credit cards frequently, your debt can spiral out of control. Fortunately, there are ways to get back on track.

Tips for Paying Off Credit Card Debt

Numerous solutions are available for credit card debt relief. Some consumers ignore their debt and settle into a routine of paying their minimums. While this method keeps creditors happy, it doesn’t resolve debt issues fast. If you’re serious about paying your credit card debt and you’re looking for a solution, consider the following tips to reduce credit card debt.

• Pay more than your minimum balance. Stop paying only the minimum. Credit card companies require a payment that’s about 2% or 3% of your outstanding balance. Typically, this payment pays down the interest charges for the month and a small percentage of your principal. Jump start your debt elimination efforts and increase your monthly payments. Ideally, you want to drop a large sum on your debt each month. But if this isn’t doable, aim for a payment that’s double or triple your minimum payment requirement, and then gradually increase your payment as your income allows.
• Stop charging purchases. Stay on the right path and put your credit cards away. Keep them out of your wallet, or go a step further and cut credit cards in half. This removes any temptation to spend. And without additional charges, you can lower your credit card debt quickly.
• Shop for a better interest rate. The less interest you pay each month, the easier it is to pay down your credit card debt. There are two ways to approach this: You can either call your current creditors and ask for better credit card rates, or apply for a low-rate credit card and transfer your balances.

Credit Card Debt Consolidation

Depending on the severity of your debt situation, you may look into credit card debt consolidation. A consolidation combines your credit card debt into a single loan or payment. This payment typically features a lower interest rate, thus allowing you to save money each month. And with debts consolidated, you’ll simplify your finances and deal with one creditor a month.

There are numerous ways to consolidate credit card debt. You can borrow against the equity in your home with a refinance or a home equity loan. Use this cash to pay off your credit cards, and then repay your lender in monthly installments. Also, you can work with a non-profit debt consolidation agency who manages your debt and works with your existing creditors to negotiate better terms and interest rates. A single payment is submitted to the agency, and the agency distributes this payment to your various creditors.

Credit Card Debt Settlement

A settlement is another practical way to get credit card debt relief. With this approach, you strike a deal with your creditors to settle your balance for less than you owe. Let’s say you owe $10,000. In this case, your creditor may accept a settlement of $6,000 or $7,000. A great way to eliminate debt, but there’s a catch. With a credit card debt settlement, creditors typically require a one-time lump sum payment.