Let’s be honest: The first half of the year can get a little spendy. Between permanent change-of-station (PCS) season, spring break travel, summer camp sign-ups and the occasional “Hey, we deserve this” splurge, your credit card balance might look a bit heftier than you’d like. Don’t worry — you’re not alone. But now it’s time for a financial gut check and a solid plan to clean up that debt before it sneaks into 2026 with you.
Step 1: Acknowledge It, Then Own It
Credit card debt can be sneaky. A dinner here, a last-minute plane ticket there and suddenly you’re staring down a few thousand dollars at 20%-plus interest. And with average interest rates hovering above that rate these days, paying only the minimum is like bailing water with a thimble: You’re getting nowhere fast.
So pull up those statements, add it all up and look it in the eye. Yes, even that impulse Amazon order at 2 a.m — yes, I’m talking to you. It happened. Now it’s time to deal with it.
Step 2: Make a Payoff Plan
There’s no one-size-fits-all solution here, but the key is intentionality. Here are a few strategies worth considering:
- The Avalanche Method: Pay off the card with the highest interest rate first while making minimum payments on the rest. This saves you the most in interest.
- The Snowball Method: Pay off the card with the smallest balance first to build momentum. This can be a huge psychological boost by quickly realizing tangible progress.
- Debt Consolidation: If your credit is in good shape, consider a balance transfer card or a personal loan with a lower interest rate. Just make sure you use it to pay off the debt — not rack up more.
Whichever approach you choose, automate your payments and track your progress. As I’m fond of saying, “Action without the requirement for a decision is a win.” Watching that balance drop each month can be a powerful motivator.
Step 3: Plug the Leaks
A debt payoff plan is only effective if you stop adding to the pile. This means getting serious about your spending. Rework your budget to reflect where your money actually goes, not where you wish it went.
Cut back on the nonessentials for a while: streaming services, daily takeout, those “just browsing” trips to the store. You might be surprised how much you can redirect toward your debt.
And don’t forget to take advantage of military-specific laws:
- Military Lending Act (MLA) protections limit interest rates on certain debts incurred during active duty.
- The Servicemembers Civil Relief Act (SCRA) may provide lower interest rates on pre-service debts.
These can offer real relief if you qualify; make sure to ask your lender or talk to the folks at legal assistance.
Step 4: Turn Raises into Results
A cost-of-living adjustment? Promotion? Time-in-service pay bump? Don’t let it vanish into lifestyle creep. Earmark those increases to supersize your payments to debt.
Even a small monthly boost — $50 or $100 — can accelerate your payoff timeline significantly. Your future self will thank you when that final payment clears.
Remember, Progress Beats Perfection
Getting into debt might have felt easy. Getting out? Not so much. But the second half of the year is your chance to reclaim your momentum.
You don’t have to be perfect. You just have to start. Create a plan, stay consistent and celebrate the wins along the way. That moment when you pay off your last credit card balance? That’s fireworks worthy.
So take a breath, make a plan and start chipping away. July is the perfect time to get serious, because nothing feels better than heading into the holidays (and the new year) with a clean slate and a lighter load.
Related: 4 Midyear Money Moves for a December to Remember
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