Strategies for Paying Off Credit Card Debt

Published May 30, 2025

My husband and I are retired and have accumulated a lot of credit card debt over the past few years. We need help paying it off, what can you tell us?

Credit card debt is a growing concern for millions of older Americans. According to a recent report, 52% of adults between the ages 50 to 64 have credit card debt, along with 42% of those ages 65 to 74. Among older adults carrying a balance, approximately one-half owe $5,000 or more while nearly one-third owe $10,000.

Rising costs of basic expenses like food, housing, utilities and health care are the reasons behind the prevalence of credit card debt among older Americans. Now new tariffs on products made in China and other foreign countries are expected to also make many goods more expensive, which could cause more debt. While paying off credit card debt can feel overwhelming in this economic environment, it is possible if you have a plan. Here are some strategies to help you handle it.

Create a Budget

Start by taking a close look at your income and expenses to see where you can free up money to put toward your credit card debt. Look for areas to reduce spending, such as dining out, entertainment or subscriptions. It is worth checking whether you are eligible for financial assistance programs that can help boost your budget by paying for necessities like food, utilities, medicine and health care.

Call the Card Company

While the average credit card interest rate is more than 20%, some credit card companies may be willing to lower your interest rate or work out a payment plan, especially if you are struggling. Contact the credit card company to negotiate a lower rate and ask about what options are available.

Pay More Than the Minimum

Credit card companies only require the minimum payment, but it is usually mostly interest. Whenever possible, aim to pay more than the minimum every month to lower the principal balance.

Choose a Repayment Strategy

If you have more than one credit card, pick one and work towards paying it down while continuing to make at least the minimum payments on the others to avoid fees or damage to your credit. Start with the card that carries the highest interest rate, or the one with the smallest balance. If you focus on paying off the card with the highest interest rate first, you will pay less interest over time, saving yourself money. Once the highest-interest card is paid off, move to the next highest, and so on. Alternatively, you may want to start with the card with the smallest balance. Paying off smaller debts quickly can give you a sense of accomplishment and motivate you to keep going.

Consolidate Your Debt

If you have multiple high-interest cards, investigate consolidating your debt with a low-interest personal loan from your bank or credit union. You could also transfer your debts to a credit card with 0% interest for an introductory period, which is usually between 15 to 21 months. This will temporarily eliminate the amount of interest you are paying. Once the introductory promotion ends, the card company will charge interest on any remaining balance.

Consider a Debt Management Plan

If you need more help, use a reputable nonprofit credit counseling agency to create a debt management plan. A counselor will go over your income and debts and determine what is workable. The counselor will then negotiate with your lenders, to get a payment plan that will lower your interest and monthly payments and possibly forgive some debt.

If you accept their negotiated offer, you will start making one monthly payment to the counseling service, which will in turn pay the issuers. You may be charged a small fee and have to surrender the cards included in the plan, but your debt could be paid off more quickly.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.