Credit cards, store cards, or other lines of credit can be both a valuable tool and a potential problem. When used properly, they can help you take advantage of deals and achieve your goals. But carrying debt on high-rate lines of credit can end up costing you.

If you have high-rate debt that you're struggling to pay off, you're not alone. Many Americans feel overwhelmed by credit card or personal loan debt. But there are strategies and approaches to help you pay off your debt efficiently and regain control over your financial well-being.

We've laid out five practical tips and methods to help you tackle high-rate debt once and for all.

Create a Budget

The first step in paying off high-rate debt is getting a clear understanding of your current financial situation.

A budget is a financial tool that outlines your monthly income and expenses, and it will help you identify places where you can reign in your spending or allocate funds elsewhere. A well-planned budget will provide a roadmap for managing your finances and prioritizing debt payments.

You can track your spending, create a savings goal and assess your financial health through the Plan and Learn feature in Online Banking or on the Apple FCU Mobile App. Simply click More and select Plan and Learn to explore how you can improve your financial habits.

Pay More Than the Minimum

Credit cards usually offer low payments compared to your balance and can be a beneficial financial tool to have available. However, consistently only paying that low minimum payment can lead to increasingly larger balances over time.

The best practice when it comes to paying off your high-rate credit card debt is to pay more than the minimum as often as you can. You will know how much money you can throw at your debt when you budget. Making payments frequently will help tackle the overall balance more quickly than making the once-a-month required payment.

Choose a Debt Payment Method

There are two general strategies you can use when paying off high-rate debt: the snowball method or the avalanche method.

The snowball method refers to paying off your smallest debts first before moving onto your larger ones. This method may be preferable if you want to clear away smaller debts first and can help you feel accomplished early on in your repayment journey.

On the other hand, the avalanche method refers to starting with your largest debts first and moving your way down to your smallest balances. You can either start with the most expensive debt to carry forward (highest rate) or the largest balance. Either way, the avalanche method helps you address your biggest concern first.

Whether you prefer the snowball or avalanche method, creating a game plan will help you follow through. Many find that seeing progress on their debt helps them stay motivated. Whether progress looks like paying off your smallest or largest debts first, make a plan and stick to it.

Consolidate Debt

Sometimes, the best option for paying off high-rate balances is to combine them into one, single payment that you can manage. Debt consolidation allows you to streamline your payments and potentially save money on interest charges.

Many people consolidate their debt through balance transfer Credit cards, personal loans or home equity lines of credit.

Reach out to our team to learn about our current promotions that can help you consolidate your debt.

Find a Side Hustle

It's amazing how far a little extra cash can take you when it comes to becoming debt free. Finding a side hustle to increase your income is an incredible tactic to use to accelerate your debt repayment journey.

A side hustle is a job that a person takes up in addition to their full-time job. This can be anything from working at a coffeeshop part-time, working as a freelance writer, driving for Lyft or Uber or monetizing a hobby.

Many people pick up a side hustle and use the extra income solely for paying off high-rate debt. By boosting your earnings, you'll have more money to allocate to debt repayment and speed up the process of becoming debt-free.

Paying off high-rate debt requires commitment, discipline and a well-thought-out plan. It's not an overnight process, but starting today can help you regain control of your financial well-being and build a more secure future.

Visit our Learning Center to access tools and resources to get you on the path to financial freedom.