While credit cards are powerful tools, for some it can be easy to slip from controlled spending into a sticky situation. Even if you’re on top of your finances, one or two unexpected expenses or a few unplanned purchases can send your balance skyrocketing.
If you're carrying revolving credit card debt, you’re definitely not alone. According to a Bankrate survey, 47% of credit card holders report carrying a balance month to month, and 22% don’t believe they’ll ever fully pay it off. That’s more than one out of every five cardholders, so there’s a widespread pattern hiding behind otherwise seemingly put-together lives.
Dr. Gilbert Rogers, our Financial Education and Wellness Manager, has spent his career helping individuals and families build a healthier relationship with money, including the complicated feelings that can come with credit card debt. He offers five rules to help you get the most out of your credit card.
Rule #1: Know why you’re getting a credit card and maximize your benefits
We all get card offers in the mail, when shopping online, or even in the checkout line of many retailers. It’s easy to rack up new cards and new balances without even noticing.
“The first question I ask someone with multiple credit cards is ‘why did you get that card?’” Rogers says. “What’s your goal? Is it for airline miles? Emergencies? Or is it because you got that 25% one-time discount?” For example, a card that earns bonus points on gas can be advantageous, unless it becomes the card you use for the rest of your spending, which negates the value of that card’s benefits. Rogers explains that issuers want you to spend more on the cards they give you, “so it’s a nudge to get a specific card for a specific reason,” he says. “But once you start using the card for purchases outside of that reason, you don’t benefit from the perks you initially signed up for.”
The simple fix? Know the benefits of a card before using it and use it only when the purchase aligns with the purpose. Check in at least yearly to see if a specific card is still worthwhile to keep.
Bonus Tip: Read the fine print on cards you already have because they might offer benefits you aren’t taking advantage of. You may have built-in ID theft protection and dark web monitoring, for example.
Buyer protection, where your card company advocates for you on a defective purchase, is also common. Rogers learned this firsthand when a laptop purchase went sideways. “There were issues with the keyboard,” he says, “and when I went back to the store, they wouldn’t accept the return. But my card’s protection kicked in, and MasterCard credited my account the amount I had spent.”
Rule #2: Pay off cards in full or, if you have a balance, pick a payoff strategy
All the other advice about card usage goes out the window if you’re carrying a balance. Rogers is upfront about this fundamental rule: “You have to ensure the bill is paid every month,” he says. Card interest rates are high enough that even a few months of revolving debt can offset the value of any rewards you’ve earned.
If you’re actively looking to pay down card debt, the two most common approaches are the snowball and the avalanche. The avalanche method targets the highest-interest card first, which minimizes the total interest paid overtime. The snowball method targets the smallest balance first, regardless of interest rate, so there’s more tangible progress.
While the avalanche method is more efficient mathematically, motivation matters just as much. “You may be someone with a high balance and you’re paying every month but not feeling like you’re getting anywhere,” Rogers says, speaking from experience. “That frustration can deter you from sticking to that avalanche strategy.” If seeing a card balance hit zero helps you stick to a plan, the snowball approach could be a better fit.
Whichever method you choose, set up autopay for at least the monthly minimum on every card. Missing a payment hurts your credit score and adds fees on top of the interest you're already carrying. Autopay is a low-effort habit with real financial upside.
Rule #3: Keep it simple with fewer cards
There’s a persistent idea that accumulating credit cards improves your overall credit. While that’s true to a certain extent, more cards also translate into more statements to track and more exposure to overlooked charges or even identity theft.
“The fewer cards you have, the better,” Rogers says. “They’re easier to manage. And many perks are tied to additional spending, meaning you have to spend more to take advantage of those perks.” Smaller balances, spread out across multiple cards, don’t look as scary as one huge balance, but they can be just as destructive to your financial health.
Rogers developed a practical framework during his time doing financial education for the military: Three cards is a sweet spot. “An everyday card gives you the best bang for your buck for most of your perks and rewards,” he says, “and then you add a travel card and an emergency card.” If you do close a card to get closer to three total cards, opt for a newer one with a lower limit so there’s minimal impact to your credit score.
Whatever number of cards you carry, it’s a great idea to turn on transaction alerts for all of them. Every purchase triggers a notification, which is a lightweight way to catch fraud early and gives a useful real-time reminder of what’s being spent.
Rule #4: If you share finances, make credit part of the conversation
Money is one of the most common sources of friction in relationships, and credit cards have a way of causing couples to fight. A joint card means all purchases are visible to all cardholders.
“The dynamics of relationships and how they work as a whole can become synonymous to your credit card usage,” Rogers says. “Are you discussing things? Are you open? Are you actually communicating?” Getting on the same page about credit cards is similar to open communication in other aspects of your relationship.
Rogers also recommends building regular financial check-ins into your routine and tying them to something you already enjoy, like a TV show, a meal or a weekend ritual. “You actually look forward to that meeting because you know the game’s coming up next,” he explains. Make a financial discussion a normal part of your family’s life, not a topic that only surfaces when something goes wrong. Need a few more tips on how to talk about money in a healthy way? Check out our article, How to talk about money with parents, friends and partners (without being awkward).
Rule #5: Talk about debt so you don’t experience it as a shameful secret
Rogers is the youngest of seven children, all raised by a single parent. His first job was at Macy’s, where taking advantage of the employee discount required opening a store card. “They gave me a $5,000 limit,” he says, “while I’m making $7.16 an hour.” Small purchases quickly added up, and Rogers maxed out the card. While he didn’t miss payments, the balance barely seemed to move no matter what he paid toward it.
He shares the story because it’s all too common. Remember that Bankrate survey? Nearly half of all cardholders carry a monthly balance, and many of them also carry the shame that comes with feeling financially stuck. But talking about debt can have serious benefits: Most cardholders don’t know they can call their issuer and ask for a temporary interest rate reduction, for example. Many don’t know that skipping a payment in a genuine pinch is sometimes available if you ask.
“Those kinds of opportunities get missed,” Rogers says. “You may not know unless you’re talking to someone who’s been through this in the past.”
Conclusion: Clarity, communication and understanding keep you in control of credit cards
Credit cards are useful tools, and debt is something nearly everyone will encounter at some point. The good news is that getting out of debt usually has less to do with the numbers than with being willing to look at them clearly, talk about them openly and ask for help when you need it.
“A big part of success when it comes to money is understanding,” Rogers says. “Understanding that it’s part of a bigger purpose of reaching your goals.”
