Written By: Chris O’Shea

Some tips on paying down credit card debt.

According to a recent report, the average American household has $6,100 in credit card debt. If you’re someone carrying the weight of debt, it’s time to create a plan to pay it off. We’ve got you. Here are some steps to take.

Add it Up

The first step toward paying down your debt is to know exactly how much you owe.

• Contact your lenders.
• Gather statements and bills.
• Add up the total credit card debts so you know the starting point. 

Check Your Budget

Next, review your budget and trim some expenses.

• Carefully go through bank statements, receipts, and bills.
• Target monthly bills or expenses you can cut to free up some money.
• Once you’ve freed up some cash, dedicate that extra money to paying down your debt.

Pick an Idea

It’s time now to pick a debt payment strategy. The two most popular methods are the snowball method and the avalanche method.

• Snowball Method. With this method, you pay the smallest credit card debt first, then proceed to the next smallest debt, and pay that, then repeat.
• Avalanche Method. With avalanche, you pay down the credit card with the highest interest rate first. Then the next highest rate card, repeat.

It’s not so important which strategy you choose. What is important is picking a strategy that you know you’ll stick with.

Do One Thing: Try paying down debt using the method that works best with your habits and personality. If you try one method and it’s not working, try the other method. The bottom line is paying off debt, so do what works best for you.