If self-repayment is not feasible, consider these more formal paths: Credit card debt. What to do if you cannot pay - StepChange
: Focus on paying off the smallest balance first while making minimum payments on others. This provides "quick wins" that build psychological momentum.
: Debt is often considered "too much" if it cannot be repaid within six months without liquidating retirement accounts, or if total monthly obligations exceed 36% of your gross income. credit card debt
A thorough review of credit card debt requires assessing the total amount owed, understanding the long-term cost of interest, and choosing a structured repayment strategy. As of 2025, U.S. credit card debt has reached a record , with the average household balance exceeding $6,700 and interest rates averaging nearly 22% . 1. Critical Debt Assessment
Decide between psychological motivation or mathematical efficiency: If self-repayment is not feasible, consider these more
: Focus on the debt with the highest interest rate (APR) first. This is the most efficient method mathematically, saving you the most money in total interest over time. 3. Debt Relief and Consolidation Options
Before choosing a strategy, you must define the severity of your debt: : Debt is often considered "too much" if
: This is defined as making only minimum payments for 18 months or more , which can keep you in debt for decades while costs balloon due to interest.