A Smarter Way to Pay Off Your Credit Card
Paying off a credit card debt often takes longer than expected. For many families, the debt and growing interest lingers quietly in the background like a DIY project that is never urgent enough to tackle, but always there to make you feel guilty.
But it doesn’t have to stay that way. With just a few practical steps, you can take control and move towards financial peace of mind.
Avoiding the minimum payment trap
Credit cards can feel manageable because the minimum payment is low. But interest builds quickly, turning a small balance into a long-term burden.
Take Gavi and Bracha Fisher* for example. They used a credit card to cover £2,000 in travel costs to visit Bracha’s elderly parents. With a 19% interest rate and only minimum payments, it could take 17 years to repay. By then, they would pay back almost £3,900, nearly double what they borrowed.
By the time they’re paid off, their own kids will be old enough to have their own credit cards.
The magic of consistently paying more
Here’s where it gets encouraging.
If Gavi and Bracha simply added £10 to their monthly payment, they’d shave 10 years off their repayment time and save almost £1,000 in interest.
If they managed an extra £70 a month, they would repay the full amount in just over 3 years, paying only £650 in interest.
You don’t need a lot of extra money. The key is being consistent. A fixed monthly amount, even a small one, makes a big difference.
Without a fixed plan, it is easy to slip into the habit of “just paying the minimum” again and again. Sticking to a set amount helps you stay focused.
Breezing past your mini-goals
Breaking down a larger debt into smaller goals makes it easier to manage. Each milestone is a chance to see your progress and feel good about it.
Gavi and Bracha tracked their progress in £500 steps. Each time they hit a target, they paused to celebrate. Whether it was a special Shabbos dessert or a relaxing evening, it kept them motivated and positive.
Cut the card and consider bank transfers
Trying to pay off a credit card while still using it is like trying to diet with a tray of rogelach in the kitchen. Yes, technically possible. No, not happening.
Put the card away. Not in the “back of the wallet for emergencies”. We mean out of reach, like somewhere you only go during Pesach cleaning.
Some banks offer credit card balance transfers with a 0% interest rate for a limited time. This can be useful, but it is important to read the terms carefully. There may be a fee for transferring the balance, and the 0% rate often ends after 12 or 24 months. Make sure you have a plan to repay the debt within that time so you can enjoy the full benefit.
It is also worth remembering that while credit card points and air miles can be appealing, they are often not worth the interest you end up paying. Paying in full every month can be much more financially rewarding.
Use your credit cards wisely
Using a credit card is not always a problem, but it should come with a clear plan. Ideally, you pay off the statement balance in full every month to avoid high interest.
If you do find yourself with a credit card balance that you want to clear, remind yourself that it is possible. Create a simple, realistic repayment plan. Focus on consistency. Celebrate your progress. And know that each thoughtful step you take brings you closer to greater financial control.