Erase Credit Card Debt

Put The Debt Roll Up Method To Work For You

Looking to erase credit card debt? If you meet the following criteria, then the debt roll up method may be just what you are looking for.

You must be either currently paying more than your minimum payments each month, or have the ability to do so in the future.

Sidebar: A great way to free up more money to put towards your debts each month is to create a budget. In fact the simple act of preparing a budget can save you 10% each month right off the bat.

If you can't make more than the minimum payments, then this debt relief method won't work for you. But don't worry too much, there are other options. (Here is a complete list of your options for getting out of debt. opens a new window)

The Premise Of The Debt Roll Up Method To Erase Credit Card Debt

Write down all of you debt balances and the minimum monthly payment for each. Then, divide the balances by the minimum monthly payment. This gives you a number called the "divisor" which is assigned to each debt.

Next, order your debts starting with the one with the largest divisor, working your way down the list. If two debts have equal divisors, list the one with the lowest interest rate first.

Now, for every debt except the bottom debt, you only make the absolute minimum payment for each. For the bottom debt however, you pay the minimum plus whatever extra amount that you have. You do this each month until that bottom debt is fully paid off.

Next, you roll up the amount that you had been paying on the bottom debt, and start applying it to the next debt above it on the list. You keep doing this until all the debts are gone.

An Example: Using The Debt Roll Up Method To Erase Credit Card Debt

For this debt roll up example we will assume the following:

  • you have five outstanding debts
  • total outstanding debt is $53,000
  • total minimum payments due each month is $1,155
  • you have $1,300 available each month to put towards your debts
Here (in table format) is how you would set up your debt roll up plan in order to erase your credit card debt and other personal debts...

Outstanding Balance
Minimum Payment Amount
Roll Up Amount
Total Payment (until paid)
Car Payments
Personal Loan (12%)
Visa #2 (19%)
MasterCard (17%)
Visa #2 (22%)


You will notice that the debts have been ranked from the highest divisor to lowest. The bottom two credit card debts have equal divisors so the one  with the highest interest rate is listed last. Now, because you have $1,300 to put towards your debts each month, and only $1,155 in minimum payments due, you would take the extra $145 each month and apply it to the bottom debt on your list. You would now be paying $305 each month on "Visa #2" until the balance is completely paid off.

Once "Visa #2" is paid off, you would then "roll-up" the $305 you were paying towards it into your Mastercard payment which would now become $505. And each time you pay off a debt, you would continue to roll-up the payments into the next debt above.

In order to erase credit card debt (and other debt) using the roll up method, you cannot miss payments, and you must not take on any new debt. If you can do those two things, and stick to the plan, this is one of the most effective and proven methods of eliminating credit card debt.

Other Options To Erase Credit Card Debt

If you are already struggling just to make the minimum payments on your credit card debts, then as I said earlier, the debt roll up method will not work for you. Your next best option would be to consider a debt management plan.

A debt management plan or DMP, can be arranged through a credit counseling company, and offers an alternative to the debt roll up plan. With a DMP your interest rates are typically reduced, and more favorable terms and repayment arrangements are made with your creditors. The idea of the debt management plan is similar to the debt roll up plan and the time line is similar as well.