3 Effective Ways to Pay Off $6,500 in Credit Card Debt

It's never easy to get out from under your debts. But credit card debt can be especially unruly, due to its high interest rates. The average credit card APR was up to 21.59% in February 2024, according to Federal Reserve Economic Data.

At that rate, the average American credit card balance ($6,501 in 2023) would generate $785 in interest if it were paid with 12 monthly payments of $607. If you were to make a lower monthly payment than that (let's say $150), your interest payments could start to cost as much as the amount borrowed.

Although credit card debt can be hard to tame, there are some methods to help you regain control. If paying $6,500 or more in credit card debt feels like an uphill battle, here are three strategies that could help you pay it off.

1. Use a balance transfer credit cards to eliminate interest payments

The best balance transfer cards are designed to facilitate balance transfers. This is a transfer of credit card debt from one card to another.

On the downside, balance transfer credit cards have balance transfer fees, usually about 3% to 5% of the total transfer. That means, for every $1,000 you transfer, you'll likely pay between $30 and $50 in fees.

These cards will also cap how much you can transfer, and it's usually the same amount as the card's credit limit. While it's not unheard of to get approved for credit limits above $6,500, it's not guaranteed either. If you have insufficient credit on one card, you might need more than one balance transfer credit card to transfer the entire balance.

2. Negotiate credit card interest rates

Credit card companies aren't always the bad guys. Though they make money off interest payments, they do, in the end, want you to pay your debts back. To that purpose, credit card companies will sometimes work with borrowers to create a repayment plan that helps them eliminate their debt.

To negotiate your credit card debt, call the number on the back of your credit card and ask to speak to a representative in the debt settlement department. Once connected, explain your situation. You could propose your own solutions or ask them what payment plans they might offer.

For instance, some credit card companies will reduce your credit card's interest rate for a specific period. During this time, it might set up a payment plan to ensure you pay the balance off before the reduced rate period ends. Others will accept a smaller sum than what's owed if you agree to pay it all upfront.

Not every credit card company is willing to work with you. But asking is worth a try, especially if your options are limited.

3. Consider debt consolidation loans

Debt consolidation loans combine balances from different credit cards into one monthly loan payment. The APR on these loans is often lower than the APR on credit cards, so you can take the savings on interest and put it toward your principal. Unlike some balance transfer credit cards, many of these loans will have high enough limits to allow a $6,500 debt transfer.

You might need to make some sacrifices

Hang in there. As tough as this time feels, staying focused and making a plan can be what you need to chip away at your credit card debts. Most importantly, be sure to celebrate the victories along the way. Paying off $6,500 in debt is a big accomplishment, so plan for something exciting to help you get there.