6 Ways To Pay Off Your Credit Card Debt

Fatin Haris

Fatin Haris

Last updated 05 October, 2022

Sign up for a credit card, it’ll be fun, they said! And you did, but now you’re knee-deep in debt. First, let’s not panic. Take a step back and remind ourselves why we signed up for credit cards in the first place. Credit cards do have positive attributes!  For example, it can help you build credit, safer to carry around, offer rewards, and can be useful in emergencies. However, most people fail to manage their finances when using a credit card which resulted in a pile of debt. Fret not, check out 6 ways to pay off your credit card debt in this article!

Ways to pay off your credit card debt #1: Stop using your credit card

This is the first step you need to seriously consider. Take out your credit card from your wallet and hide it somewhere so you won’t be tempted to use it. Make it a rule that you can only carry your credit card again once you’ve paid off all your debt. If you have more than one credit card, consider only maintaining one that provides the best benefits and perks once you’ve settled your debts and terminated the rest.

Ways to pay off your credit card debt #2: Revise your expenses


Once you’ve stopped using your credit card, revise your monthly expenses to free up some cash to settle your debt. You’ll need to trim your expenses and cut unnecessary spending like that T20-priced coffee you need to get first thing in the morning, app subscriptions, data storage, and pricey gym memberships.

Ways to pay off your credit card debt #3: Try the debt snowball method

To build a snowball, one needs to gather small amounts of snow and start rolling it around -  that’s how the debt snowball method works as well. You start by paying off the smallest debt and continue until all your debt is paid in full. Alternatively, you can also try the next method which is the Debt Avalanche strategy.

Related: The Debt Snowball Method: How It Works And How To Use It

Ways to pay off your credit card debt #4: Debt Avalanche method

Do you have any high-interest debt? If you do then the debt avalanche method is what you need to focus on. Here’s how to pay your debt using the avalanche method:

  1. List all your debt together with the total amount you owe, minimum monthly payment, and the interest rate.
  2. Sort the list with the highest interest debt first and pay it off accordingly. 

Ways to pay off your credit card debt #5: Balance transfer

Do you own any credit card with a 0% interest rate for a certain duration like Bank Balance Transfer Plan offered by Alliance Bank? If you do, it's time to utilize the balance transfer feature. Transfer all your outstanding debt to that one credit card and the best part is that you won't have to pay interest as long as you settle your debt within the 0% interest time frame! 

Read more on how balance transfers on credit cards work, here

Ways to pay off your credit card debt #6: Seek help from AKPK 

Another option, not most people want to consider is to seek help from Agensi Kaunselling dan Pengurusan Kredit (AKPK) or the Credit Counselling and Debt Management Agency. This agency was established by Bank Negara Malaysia (BNM) to help individuals take control of their financial situation and gain peace of mind that comes from the wise use of credit. Learn how and what will happen when you seek help from AKPK in this article.

We hope all the listed ways to pay off your credit card debt will help you to better manage your expenses and light your way out of your debt. Paying off your credit card debt can be exhausting but you need to stay committed and continue to learn how to avoid more debt in the future.


Use a personal loan to consolidate your outstanding debt at a lower interest rate!

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