How to Take Control of Your Credit Card Debt in 2021

The start of 2021 means a new year, and a new opportunity for you to improve your finances. If you’ve set a goal of lowering your debt in the new year, there are ways to make that goal more manageable.
Credit card debt, also known as revolving debt, can affect your credit score by impacting your credit utilization ratio. Your credit utilization ratio is your total available credit compared to the amount of credit you’re using. To maintain a good credit score, you’ll want this percentage to be below 30%. Paying off your debt can help you improve your credit score, in addition to helping you save money on interest and allowing you the peace of mind that comes with being debt free.
Steps to take to pay off credit card debt
Here are a few steps you can take to pay off your credit card debt:
Set a goal
Setting a goal, no matter how small, can help you stick with whichever payoff method you pick. Setting smaller, attainable goals can help when tackling large debts, as you can more easily see the progress you’re making and motivate yourself to continue your good work.
Create a budget
Try creating a budget to avoid wasting money on discretionary expenses. You’ll be able to prioritize what you really need and stop spending money on items that aren’t necessities.
Select a payoff method
Once you’ve set definite goals and created a budget, it’s time to pick a credit card payoff method. Remember: the best payoff method is the one you think you’ll be most likely to stick with.
5 ways to pay off debt in 2021
Here are 5 ways you can pay off your credit card debt this year:
1. Balance transfer
A balance transfer is when you transfer your existing credit card balances to a new card. The best credit card for a balance transfer is one with a low introductory interest rate for balance transfers, and low or no balance transfer fees. Balance transfers can both simplify bill paying each month (you’ll only have to worry about paying one balance) and save you money in interest.
2. Personal loan
A personal loan can help you pay off credit card debt. Make sure to do some research into the different loans available to you and the rates you qualify for. Better credit scores usually mean lower interest rates.
3. Snowball method
With the snowball method, you focus on paying off your debt from your smallest to largest balances, regardless of the interest rates. You will make minimum payments on all of your debts but put extra money towards the smallest one. Once that debt is paid off, you’ll move on to paying off the second smallest debt. This method is great for individuals who need a little extra motivation to pay their debt off. 
4. Avalanche method
With the avalanche method, you pay debt in order of the highest to lowest interest rates. You will make minimum payments on all of your debts but put extra money towards the one with the highest interest rate. After that, you’ll put extra towards the debt with the second highest interest rate. This method can help you save money since you’ll pay less interest over time.
5. Debt management
A debt management plan (DMP) is when you work with a nonprofit credit agency to help you lower monthly payments/reduce interest rates/improve your financial habits. You’ll still pay down your principal amount, but you’ll have some professional guidance along the way. 
Source: iQuanti, Inc.