What is a recommended method for reducing credit card debt?

Creating a payment plan and making larger payments is an effective method for reducing credit card debt because it allows individuals to take a structured approach to managing their finances. By developing a payment plan, a person can prioritize their debts, allocate specific amounts to pay off each card, and track their progress over time. Making larger payments helps reduce the principal balance faster, which in turn reduces the interest owed over time and can help decrease the overall duration of the debt repayment.

In contrast to this method, simply avoiding payments would worsen the debt situation by accumulating more interest and potentially leading to penalties and damaged credit scores. Using credit cards more frequently would likely increase debt levels, making it harder to manage existing balances. Meanwhile, transferring debt from one card to another might provide temporary relief or promotional rates, but it does not address the underlying issue of managing and reducing the overall debt load effectively, and can lead to a cycle of increasing debt if not handled carefully. Thus, establishing a clear payment strategy with larger payments is a productive and sustainable choice for individuals aiming to reduce their credit card debt.