The Biggest Mistake People Make With Credit Card Debt—and What to Do Instead

Credit card debt is hitting record highs in the U.S., with balances reaching a staggering $1.2 trillion, according to the Federal Reserve Bank of New York. But while overspending might seem like the obvious culprit, a surprising number of Americans are stuck in debt for a completely different reason.

According to a recent Experian survey, 4 in 10 people believe that making just the minimum payment on their credit cards is enough to manage their debt.

Why This Mindset Keeps You in Debt Longer

It’s easy to see why this misconception persists. The minimum payment is clearly printed on every credit card statement—so it feels like the right thing to do. But experts warn that this approach is actually a trap.

“Only paying the minimum will keep you in debt much longer,” says Melissa Lambarena, a senior credit card writer at NerdWallet.

Here’s the math: If you carry the average credit card balance of $6,600 and make only the minimum payment (just 1% of the balance) on a card with a 20% interest rate, it could take you 18 years to pay it off, according to Ted Rossman, senior industry analyst at Bankrate.

“That minimum payment math is really brutal,” Rossman adds.

How to Get Out of Debt Faster: Two Proven Strategies

If you’re serious about ditching credit card debt, paying more than the minimum is a must. But just throwing money at your cards without a plan can feel overwhelming. That’s where two popular debt payoff strategies come in: the snowball and avalanche methods.

1. The Snowball Method

This method helps build psychological momentum.

• List your debts from smallest to largest balance.

• Pay the minimum on all your cards—except the smallest.

• Put any extra money toward that smallest balance.

• Once that’s gone, move on to the next smallest.

It’s called the snowball method because the progress feels like a snowball gaining speed and size as it rolls. This strategy works especially well if you’re someone who gets motivated by quick wins.

“You feel more motivated when you’re seeing progress,” Rossman explains.

2. The Avalanche Method

The avalanche method takes a more math-first approach.

• Pay the minimum on all your cards.

• Use extra funds to pay down the card with the highest interest rate first.

While this method doesn’t offer the same quick emotional payoff as snowballing, it saves you the most money in the long run by tackling your most expensive debt first.

“The avalanche method will result in the greatest financial advantage over time,” says Rod Griffin from Experian.

Which Strategy Should You Choose?

There’s no one-size-fits-all answer here. Choose the strategy that fits your mindset and helps you stay consistent.

• Need motivation? Go with the snowball.

• Want to save the most? Try the avalanche.

“The best method is the one you can stick with,” says Lambarena.