If you’re an older adult struggling with credit card debt, help is available. Options may include asking your card issuer about a hardship program, consolidating your debt, working with a nonprofit credit counselor, or creating a repayment plan that fits your fixed income.

Credit card debt has become a growing challenge for America’s retirees as the costs of housing, transportation, food, and health care continue to rise. In fact, CBS news recently reported that more than half of older adults carry credit card debt of $5,000 or more. 

“That’s turning out to be a tremendous stressor for retirees with fixed incomes,” said Jessica Johnston, NCOA Senior Strategist for Economic Well-Being. "When you’re charging things you can’t live without because your monthly expenses are higher than your income, it’s incredibly difficult to pay down those balances. And with high interest rates, credit card debt is getting even more expensive. It can feel like a hopeless cycle.”

If any of this sounds familiar, you’re not alone. Learn where to get help with credit card debt, how different relief options work, and what to consider before choosing one.

How can I get help with credit card debt?

One of the first things you should do—if you haven’t already—is learn how to create and stick to a budget. A budget won’t change your income, but it will help you better manage the money you do have.

Know that while it can be challenging, it is possible to get your credit card debt under control.  According to Johnston, it’s important to understand that your credit card debt is not a character flaw. “Most retirees aren’t using their charge cards for frivolous purchases,” Johnston said. “They’re using them out of necessity.”

What is the best way to pay off multiple credit cards?

These five key strategies can help you get your credit card debt under control.

1. Contact your credit card companies

Falling behind on your payments can leave a lasting, negative impact on your credit. That’s why the Consumer Financial Protection Bureau recommends reaching out to your creditors to explain your situation.

“Don’t be shy about asking for help,” Johnston said. “Many credit card companies are willing to work with you when you demonstrate a good faith effort." 

Before you pick up the phone, you’ll want to be as prepared as you can be, she said. That includes reviewing your income and expenses in advance and figuring out how much you can reasonably afford to pay back each month. Be ready to explain why you can’t cover your minimum monthly payment(s), and when you think you might be able to resume doing so.

When you do make your calls, here are some questions to ask:

• Do you have a forbearance program? If so, do I qualify
• Can I make a payment every other month?
• Would you consider reducing my interest rate?
• What other flexibility do you offer?

Once you agree to any new terms, be sure to get them in writing. And remember: if the idea of calling your credit card companies makes you anxious, the worst thing that can happen is they’ll say no.

2. Understand the two ways to pay off credit card debt

Often called the “snowball method” and the “avalanche method,” these two debt reduction strategies take a slightly different approach.

If you’re someone who’s motivated by small successes, the snowball method could be a helpful way to get your credit card debt under control. In this approach, you first pay the minimum monthly balance on each of your cards; then, you apply any extra money you might have—even if it’s just a few dollars—to the card with the lowest balance. Once you pay that card off, you add what you had been paying on it to your monthly payment on the card with the next-lowest balance. Each time you do this, your payments get bigger … just like a snowball rolling down a hill. Plus, you can feel a real sense of accomplishment each time you check off a card that you’ve paid.

The avalanche method also involves paying off your credit cards one at a time. However, you prioritize their order based on interest rate, not balance. You’ll start by paying the monthly minimums on each of your cards; then, you’ll apply any extra to the card with the highest interest rate. Once you pay that card off, you add what you had been paying on it to your monthly payment on the card with the next-highest interest rate.

Although this likely means it will take you more time to eliminate your credit card debt, it also means you’ll pay less in the long run because you’ll be saving on interest.

3.  Consider a debt management plan

Typically offered through a certified credit counselor, a debt management plan (DMP) consolidates your credit card debt into a single monthly payment. Your counselor will:

• Work with you to determine how much you can pay each month
• Negotiate with your credit card companies to adjust your repayment terms
• Accept your monthly payment and distribute it to your creditors

A debt management plan eliminates the need to juggle different payments and due dates. It can help you meet your debt obligations without worrying about late fees and harassing calls from debt collection agencies.

While a DMP can be a powerful tool to help you get your finances back on track, it’s also not for everyone. Learn more about the pros and cons of a debt management plan so you can decide whether it’s a good option for you.

What is a Debt Management Plan?

A debt management plan is a repayment program arranged through a credit counseling agency that combines eligible debts into one monthly payment. The agency pays your creditors, and may also negotiate lower interest rates, fees, or payments.

4.  Participate in credit counseling

Credit counseling services offer expert guidance to help you navigate your way out of debt. This can be a worthwhile strategy if you:

• Are having trouble affording monthly payments on multiple accounts.
• Want to shorten the time it will take to pay off your debt.
• Would like to learn strategies for better managing your finances.
• Prefer to get advice when working toward your financial goals.

But before you take this step, be sure to do your research, Johnston advised. “Unfortunately, there are a lot of scammers out there just waiting to take advantage of people who are buried under debt. That’s why it’s important to choose a reputable, nonprofit credit counseling agency with a solid rating from the Better Business Bureau.”

NCOA’s guide, “Is Credit Counseling Worth It?”, can help. Learn how it works, see where to find credit counselors near you, and understand what questions to ask before you choose a service.

5.  Get your money muscles in peak shape.

Coursera helps people learn vital money management and debt reduction skills. Learn more about its free Managing Debt course and enroll today.

Frequently asked questions (FAQ)

Should I pay off the card with the smallest balance or highest interest rate first?
Paying the card with the highest interest rate first will generally save you the most money. On the other hand, paying the smallest balance first may provide a quicker sense of progress and help you stay motivated. Both methods can work, so choose the one you’re most likely to stick with.

What happens if I only make minimum payments?
Making at least the minimum payment keeps your account current, but it could take years to pay down the debt and cost you much more in interest. Paying even a little more than the minimum can shorten the payoff period and lower your interest costs. Your statement should show how long repayment may take. 

Can I negotiate credit card debt?
Yes. Call your credit card company directly to ask if they can reduce your interest rate, waive fees, lower your payment, or offer a hardship plan. But be wary of debt-settlement companies, which may charge high fees and tell you to stop making payments—this could damage your credit and increase your debt in the long run. 

Should I use savings to pay off credit card debt?
Using some savings to reduce high-interest debt may save you money, but you don’t want to drain your emergency fund or retirement accounts. That’s because keeping a financial “cushion” can help prevent you from using credit again when a surprise expense arises. Get tips to protect your retirement “nest egg.”

The bottom line

Once you commit to paying down your credit card debt, it’s important to avoid running up your balances again. If you’re having trouble affording daily necessities, you may be eligible for a variety of benefits programs that can help you pay for food, medicine, utilities, and more. Visit NCOA’s BenefitsCheckUp to get connected to programs in your area that can make everyday costs more affordable.