Best Ways to Pay a Big Credit Card Bill


Receiving a large credit card bill, whether anticipated or not, can be alarming. However, paying off a larger credit card bill may be easier than you think. It just takes a solid, realistic plan and a dedication to budgeting.

How to Minimize Growing Credit Card Debt

Large or growing credit card debt can hurt your finances in several ways. For one, having a large balance could negatively affect your credit score, especially if you have trouble keeping up with your payments. Significant credit card debt can also impact your finances for years due to interest accruing. Credit cards can carry high interest rates, and if you only make minimal payments, this interest accumulation can increase your debt exponentially.

The first step to minimizing your credit card debt is to create a solid financial plan. Here are some steps you can take to start reducing your debt:

Find the source of your debt

Do an audit to determine how much debt you got on your credit card and establish a budget that will allow you to limit unnecessary spending.

Pay more than the minimum

If you can, make more than the minimum payment. This will allow you to pay off your debt faster and reduce accrued interest while staying in good standing with your creditor. Keep in mind that the remaining balance will always earn interest. It can sometimes feel like an endless cycle when you constantly pay the minimum balance, but your balance continues to grow. This may be the case if you only pay 15% of your bill, but your interest rate is well above 20%.


Refinance your loan with a debt consolidation loan, balance transfer card or HELOC to take advantage of lower interest rates. A balance transfer card, for example, can help you eliminate high-interest debt with a 0% APR offer that lasts between 12 and 21 months. When you initiate a balance transfer, you immediately start saving on interest. And as long as you manage to pay off your balance before the end of the introductory period, you can avoid paying the regular APR on any remaining balance.

Minimizing credit card debt is all about limiting interest accumulation, so any steps you can take to prevent your interest from growing can help you pay off credit card debt faster.

Refinancing Options

When it comes to refinancing your credit card debt, it’s important to remember that you’re not paying off your debt, you’re just moving it. However, certain types of refinancing could make it easier to pay off large amounts of debt. Below are some examples of how you can pay off your debt through refinancing.

debt consolidation loan

If you have multiple lines of high-interest credit card debt, consider a debt consolidation loan. A debt consolidation loan is a type of personal loan that gives you a lump sum to pay off your existing debts. You will then repay the loan with a fixed interest rate over a set repayment period. These interest rates are generally lower than credit card rates.

Credit card refinancing

Credit card refinancing, also known as balance transfer, allows you to transfer your debt from one credit card to another, ideally to take advantage of a lower interest rate. Most balance transfer credit cards will have an interest-free introductory period that typically lasts over a year.

While the 0% introductory rate can help you save thousands of dollars in interest charges, if you can’t pay off your balance by the end of the introductory period, you’ll likely be hit with an interest rate. much higher interest – so make a plan to pay off your balance by the end of the introductory period. Here are our top picks for the best balance transfer credit cards.

Refinancing by collection

You can also pay off a hefty credit card bill using cash-out refinance. A cash refinance involves replacing your mortgage with a new loan that costs more than you owe. The difference between the two is given to you in cash and can be used to pay off high interest credit card debt.

This option only really makes sense if you are able to lower the interest rate on your mortgage and plan to use all the funds from the refinance in cash for your credit card bills. If you’ve been thinking about refinancing for a while, now might be the time because 15-year fixed rate refinance rates are incredibly low.

Home Equity Line of Credit (HELOC)

HELOCs generally offer lower interest rates than credit cards and can be a useful way to consolidate your high-interest debt. A HELOC lets you tap into the existing equity in your home with a revolving line of credit – so you can withdraw cash as and when you need it.

Although HELOCs let you pay off your credit card debt all at once, there are some downsides. HELOCs are secured by your home, so if you fail to make the monthly payments on time, you run the risk of foreclosure. As with credit cards, it’s also easy to overborrow from HELOC because you don’t have to make payments until your draw period ends. For this reason, it’s wise to only touch the amount you need to pay off your credit card debt and try to make payments on your HELOC before you officially enter the repayment period.

The bottom line

When it comes to major credit card debt, remember that you have options. While getting into debt is easier than getting out of it, it’s not impossible to pay off credit card debt quickly.

The key to paying off debt is finding a strategy that works for you and sticking to it. But before making a decision, do an audit of your finances or consult a trusted financial advisor. Whichever method you choose to pay off major credit card debt, your decision should have a positive impact on your credit score and won’t leave you with more debt down the road.


Comments are closed.