How to Get Out of Credit Card Debt?

We told you Kavita’s story earlier this month — how paying just the “minimum due” on her credit card turned a ₹42,000 bill into a debt that kept growing (Read: Credit Card — Friend or Enemy?, Jun 10). But we didn’t tell you exactly how she got out of it. Here’s the step-by-step plan that worked.

Step 1: Stop using the card immediately

The first thing Kavita did was stop swiping her credit card completely. This sounds obvious, but many people keep spending on the same card while trying to pay it off — which is like trying to empty a bucket while the tap is still running. She switched to cash and UPI for all daily expenses until the debt was cleared.

Step 2: Understand exactly how much you owe — and at what interest

Kavita called her bank and got the exact outstanding amount and the exact interest rate being charged (in her case, around 3.5% per month). Seeing the real number in black and white — instead of avoiding the bill — made the problem feel manageable instead of overwhelming.

Step 3: Pay more than the minimum, every single month

The minimum due is designed to keep you in debt longer, not help you get out. Kavita worked out the absolute maximum she could pay each month without missing rent or essentials, and committed to that amount — even if it meant cutting back on other spending temporarily.

Step 4: Consider a balance transfer or personal loan, if the math works

If your credit card interest is very high (3-4% a month) and you have a decent CIBIL score, transferring the balance to another card with a lower rate, or taking a personal loan at a lower interest rate to pay off the credit card, can sometimes save you money — but only if you’re disciplined enough not to run up new credit card debt afterward.

Step 5: Attack the highest-interest debt first

If you have debt on multiple cards, always pay the minimum on all of them, but put every extra rupee towards the card with the highest interest rate first. Once that’s cleared, move to the next highest, and so on. This method (called the “avalanche method”) saves the most money in interest over time.

Step 6: Build a small buffer to avoid falling back in

Once Kavita cleared her debt, she immediately started building a small emergency fund (Read our Emergency Fund guide — May 25) — so that the next unexpected expense wouldn’t push her back onto her credit card.

How long did it take Kavita?

It took her about 10 months of disciplined, more-than-minimum payments to fully clear the ₹42,000 debt, which had grown to nearly ₹58,000 by the time she got serious about paying it down. Painful, but far better than letting it grow further.

Key Takeaways

Stop using the card until the debt is cleared
Know your exact outstanding amount and interest rate
Always pay more than the minimum due
Consider a lower-interest balance transfer or personal loan if it genuinely helps
Pay off the highest-interest debt first if you have multiple cards
Build a small emergency fund afterward to avoid falling back into debt

FAQ

Q: Will closing my credit card help me get out of debt faster?
A: Not directly — you still owe the same amount. Closing it can also affect your CIBIL score. Focus on repayment first, decide on closing later.

Q: Is it okay to borrow from family to pay off credit card debt?
A: If available, this can save you significant interest compared to a 40%+ annual credit card rate — just be clear and disciplined about repaying them too.

Q: How do I stop this from happening again?
A: Follow the golden rules from our Credit Card guide — always pay the full bill, never treat your credit limit as extra income, and set payment reminders.

Also Read