If you’re heading into retirement with credit card debt, Suze Orman has a wake-up call for you—because that debt could wreck your golden years. The good news? You don’t have to let it. With the right strategy, you can take control, slash your balances, and free yourself from the stress of high-interest payments.
Suze has spent decades helping people get their finances in order, and her advice is a game-changer. Here’s how to tackle your debt before it tackles you.
1. Focus on needs vs. wants.
One of the biggest traps that keeps people in debt is spending on things they don’t actually need. Suze Orman is a firm believer in prioritizing necessities over indulgences, especially as retirement approaches. That daily coffee shop habit? Those impulse Amazon buys? They add up fast. Take a hard look at your spending and start cutting the fluff. It’s not about depriving yourself—it’s about making sure every dollar is working for you, not against you.
2. Pay more than the minimum payment each month.
Making only the minimum payment is like trying to bail out a sinking boat with a teaspoon—it won’t get you anywhere. Credit card companies thrive on keeping you trapped in interest payments for years. If you can, throw extra money at your balance every month. Even an extra $20 or $50 can shave months (or years) off your debt. The faster you pay it down, the less you fork over in interest—and that’s money back in your pocket.
3. Call your credit card issuer and ask for a lower interest rate.
Most people don’t realize they can just ask for a lower interest rate—and often get it. Credit card companies would rather keep a good customer at a lower rate than lose them entirely. A quick phone call could mean the difference between paying 20% interest and 12%. It never hurts to try, and the worst they can say is no. But if they say yes? That’s a financial win that can help you get debt-free faster.
4. Consider a balance transfer to a card with a lower interest rate.
If your credit is decent, a balance transfer might be a smart move. Some cards offer low or even 0% interest for a promotional period, giving you breathing room to pay down the debt without accumulating more interest. Just be sure to read the fine print—once that promo period ends, the interest rate can skyrocket. Use this strategy wisely and commit to aggressively paying off your balance before the regular rate kicks in.
5. Find an extra $50 or more to put toward monthly payments.
Think of it this way: Every extra dollar you put toward your credit card debt saves you from future interest. Can you skip a few restaurant meals, cut out a subscription, or sell something you don’t use? Finding an extra $50 or $100 a month isn’t as hard as it seems, and it can make a huge difference in how fast you eliminate your balance. Small sacrifices now mean a debt-free retirement later.
6. Take on a short-term side gig to generate extra cash for debt repayment.
A little extra income can go a long way. According to Side Hustle Nation, whether it’s freelance work, driving for a rideshare company, tutoring, or selling handmade crafts, there are plenty of ways to bring in extra cash. You don’t need to take on a second full-time job—just something temporary to knock out your credit card debt faster. Even a few hundred dollars a month could speed up your debt-free timeline by years, saving you thousands in interest.
7. Pay off the credit card with the highest interest rate first.
Suze Orman recommends tackling the most expensive debt first—meaning the card with the highest interest rate. This method, known as the avalanche strategy, saves you the most money in the long run because you stop those sky-high interest charges from piling up. Once that first card is paid off, roll that payment into the next-highest balance. It might not give you quick wins like paying off small balances first, but financially, it’s the smartest move.
8. Cut up all credit cards except one for emergencies.
Credit cards can be useful, but they’re also a temptation. If you’re serious about eliminating debt, it’s time to break the cycle. Keep one card for true emergencies, but get rid of the rest. Physically cutting them up makes it real—there’s no running back to old habits. Without easy access to credit, you’re forced to live within your means and focus on financial freedom instead of accumulating more debt.
9. Negotiate with credit card companies for better terms.
You have more power than you think when it comes to negotiating with credit card companies, says Bank Rate. They want to get paid, so they may be willing to lower your interest rate, waive fees, or offer a hardship program if you ask. Be polite but firm, explain your situation, and see what they can do. Even a small change in your terms can make a big impact on how quickly you can pay off your balance.
10. Seek assistance from nonprofit credit counseling services.
If you feel overwhelmed, you don’t have to do this alone. Nonprofit credit counseling agencies can help you create a structured repayment plan, negotiate with creditors, and offer financial education to keep you on track. Unlike for-profit debt relief companies, these organizations are there to help, not take advantage of you. Just be sure to work with a reputable nonprofit group—Suze Orman strongly warns against shady debt settlement companies that charge high fees.
11. Aim to withdraw no more than 3% from retirement accounts annually.
If you’re retired or about to be, the last thing you want is to drain your savings too quickly to pay off debt. Suze Orman advises keeping your withdrawals to 3% or less each year so your money lasts. Instead of pulling large chunks from your retirement fund to pay off credit cards, focus on budgeting, cutting expenses, and increasing payments gradually. Protecting your financial future is just as important as getting out of debt.