Mass. — Credit card debt reached an all-time high of $1.28 trillion at the end of 2025. The average debt cardholders hold is just under $8,000.
While rewards benefits like cash back or travel points are appealing, it’s important to know those benefits will be eaten up by interest if monthly balances are not paid in full.
Boston 25 Consumer Advisor Clark Howard says getting that debt paid off requires a plan, patience, and persistence.
“I know your situation may feel like it’s never gonna get better, but you’ve gotta have a plan and prepare yourself for it taking a while to get to the goal, which is being debt free.” Howard said.
He says the first step is putting your credit cards in the deep freeze.
“Literally put your credit cards in the deep freeze. I got a freezer bag here, and I’m going to fill it with water, for real. And then they go in the freezer where they stay until you’ve paid every last penny you owe,” he said.
He also recommends a thorough assessment of all existing credit card debt to list the total amount owed and the interest rate for each card.
“I want you to write it all down, not to overwhelm you, but to empower you so you can take charge,” Howard explained.
Once the debt is documented, utilize either the “snowball” or “avalanche” method for repayment.
The snowball method prioritizes paying off the smallest balance first to build momentum, while maintaining minimum payments on other cards.
Howard said he prefers the avalanche method, “you’ll pay the least amount overall, and the lowest possible interest.”
This strategy involves sending the maximum possible payment to the card with the highest interest rate, while making minimum payments on all other cards.
For those struggling to manage their debt independently, professional help is available. Tara Alderete, with Money Management International, a nonprofit credit counseling agency, urges people to seek assistance early.
“I think the best thing to do is reach out as early as possible and say, hey, this is getting a little bit out of control. How can I get some help?” Alderete said.
Money Management International can help reduce interest rates, sometimes to single digits or even zero, to expedite debt repayment.
“I know getting out of debt comes with sacrifices. There are things you enjoy, you may not be able to do, but you want to talk about enjoyment. The minute you don’t owe anybody any more money, you can’t believe how great you’ll feel. I promise you,” Howard said.
This is a developing story. Check back for updates as more information becomes available.
Download the FREE Boston 25 News app for breaking news alerts.
Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW