How to reduce credit card debt in 2024


A balance transfer card or debt ‘snowballing’ can help

It’s a new year and for many, a new set of goals. If reducing credit card debt is one of your 2024 objectives, there is plenty of available assistance.

One of the fastest ways to take a bite out of a big credit card balance is to apply for a balance transfer card that offers several months of 0% interest. That means every dollar you pay on the monthly bill reduces the balance by that amount.

While there are many balance transfer cards, not all are the same. The ConsumerAffairs research team has reviewed a number of these cards to identify the ones with the best terms.

For starters, these cards should have no annual fee. You also want to consider how long you can avoid paying any interest – the longer the better.

Another consideration is the “transfer fee.” Most will charge a fee of 3% to 5% of the transferred balance, although a couple of cards waive that fee altogether.

Here are ConsumerAffairs’ top picks for balance transfer cards:

But what if your credit is…ify?

Not everyone will qualify for these cards, but there are still other things you can do to speed up your debt reduction. Personal finance experts call this hack “snowballing.” 

If you have three credit cards with balances, that’s three payments you have to make each month. But focus on the account with the smallest balance, no matter what the interest rate.

Make the minimum payment on the other two cards and pay as much as you possibly can on the card with the smallest balance. Do that each month until the card is paid off, then do the same thing with the card with the second-smallest balance.

In the video below, personal finance guru Dave Ramsey offers some extra guidance in this area.

Could your debt be reduced or forgiven? Take our financial relief quiz.