How to Pay Off Credit Cards Fast

Credit card debt is a part of life for many people. Whether it’s unexpected expenses or just a balance that grew over time, you’re not alone in looking for ways to pay it down quickly. The good news? You have options to pay it down faster and regain financial peace of mind.  

Making a payoff plan and sticking to it can help you tackle your bills and reduce your interest costs. In this article, we’ll share how to pay off credit card debt and borrow responsibly.  

1. Use a cash-out refinance to pay off debt 

If you’re a homeowner considering how to quickly pay off credit card debt, a cash-out refinance could be a smart move. This strategy replaces your existing mortgage with a new one for a higher amount, giving you a lump sum of cash that can be used to wipe out high-interest credit card balances. Since mortgage rates are typically much lower than credit card rates, this strategy can help you save money on interest while consolidating your debt into one manageable payment.  

Pros:  

• Take advantage of lower interest rates compared to credit cards 
• One fixed payment instead of multiple balances 
• Potentially improve your credit score by reducing your credit utilization 

Cons:  

• Only available to homeowners with enough equity 
• Extends your mortgage repayment, which could mean more interest over time 
• Closing costs may apply 

2. Tap into your home’s value 

A home equity line of credit (HELOC) or home equity loan is another option for homeowners researching how to pay off credit card debt fast. HELOCs and home equity loans allow you to tap into your home’s value to consolidate your high-interest credit card debt. Here’s how it works:  

• A HELOC is a revolving credit line that works like a credit card, allowing you to borrow as needed and pay interest only on what you owe during the draw period. 
• A home equity loan, or second mortgage, is a lump-sum loan with a fixed or adjustable interest rate and predictable monthly payments.  

Both options offer significantly lower interest rates than your credit cards.  

Pros:  

• Lower interest rates than credit cards 
• Fixed or flexible repayment options depending on the loan type 
• Lower your total monthly debt payments, freeing up cash for other uses 

Cons: 

• Requires home equity and isn’t an option for renters 
• May include closing costs or fees 
• Debt is secured by your home 

A HELOC or home equity loan can help you pay off your credit card balances faster, but it’s still a loan that needs to be repaid. 

3. Consider a credit card balance transfer 

Credit card balance transfers let you transfer the balance of your existing card to a new card with a low or 0% introductory rate, helping you pay it off interest free. The catch? The promotional period usually only lasts 6-21 months, so you’ll need a plan to pay off the debt in full before the regular rate kicks in.  

Pros:  

• No interest for a set period 
• Simplifies payments by consolidating debt 

Cons:  

• Balance transfer fees apply (typically 3% to 5%) 
• High interest rates apply after the promo period 

4. Target one credit card at a time 

There are several ways to pay off credit card debt, but two of the most popular strategies are the debt snowball method and the debt avalanche method. While these techniques may not be fast, they can be very effective, and they both begin by targeting one credit card at a time. 

The debt avalanche method targets your credit card debt with the highest interest rate to reduce your long-term costs. Each month, you’ll make the minimum payment on all your other cards, then use any remaining funds to pay off as much of the highest-interest loan as you can. Once it’s paid in full, move on to the credit card with the next-highest interest rate. 

The debt snowball method prioritizes paying your smallest balance first. Each month, you’ll make the minimum payment on all your other cards and put any remaining funds toward your smallest balance. When it’s paid off, move on to the card with the next-smallest balance. This approach allows you to see your progress and build on the momentum of paying off your smaller loan balances. 

Pros:  

• Builds momentum and motivation 

Cons:  

• Takes time — no instant results 

5. Level up your budget

If you want to know how to pay off credit card debt — and stay out of debt — you’ll need to start with a budget. Short-term fixes mentioned in our tips above can help, but without a solid financial plan, your credit card balances may creep back up. 

Take the time to understand your income and expenses by tracking the money you earn and the money you spend. Once you can see exactly how each dollar is used, you can:  

• Identify opportunities to cut back on your spending — trim subscriptions, dine out less, or find other areas to save. 
• Boost your income by taking on a side gig or negotiating a raise. 
• Redirect any extra cash toward paying down existing credit card debt. 
• Keep your credit card use in check by setting spending limits on discretionary expenses. 

When you create a budget, you can set goals and see where you need to adjust to achieve them. A budget can help you set your priorities, save for them, and still set aside some money to do the things you love.  

Choosing the best way to pay off your credit card debt

Paying off debt is personal, and the best strategy depends on your financial situation, preferences, and available resources. While homeowners might benefit from a cash-out refinance or home equity loan, others might find success with a balance transfer or adopting new budgeting strategies.  

If you own your home and want to tackle high-interest credit card debt by borrowing against your home’s equity, use our Cash-Out Refinance Calculator to see how much cash you could get, or speak to a Mortgage Expert to explore your options. 

Frequently asked questions 

What is the fastest way to pay off a credit card? 

The fastest way to pay off a credit card is to make extra payments and reduce your interest charges. Options like a balance transfer, cash-out refinance, or home equity loan allow you to pay off your card quickly, but they are still loans that need to be repaid.