Nearly 45% of Americans carry a credit card balance every month, with an average household balance of just over $15,000 in 2015. Because this type of debt tends to be very costly due to high interest rates, it’s usually wise to pay the balance off as soon as possible. Here are strategies that will help you eliminate debt and improve your financial position in the coming year.

Stop using credit cards. Making large debt payments is pointless if you’re still charging. Instead, buy only what you can afford to purchase with cash or a debit card until you have paid off all credit card balances.

Target one card at a time. Throw as much money as you can at one card first – such as the card with the smallest balance or the highest interest rate. By making meaningful progress toward debt reduction, you will receive a boost of confidence that can help you stay motivated as you tackle other balances.

Transfer balances. If you are committed to paying off debt within a limited-time 0% APR promotional window, such as 12 or 15 months, it makes sense to transfer balances to a new card. The lower rate will reduce your minimum monthly payments and the total amount you’ll repay on the debt.

Take out a home equity loan. If you have equity in your home, put it to work by paying off credit card debt. For example, if your home is worth $200,000 and you owe $150,000, you have $50,000 worth of equity you can utilize. Home equity loans come with much lower interest rates, so it may make sense to trade high-interest debt for low-interest debt.

Consider a personal loan. If you qualify, a personal loan with a lower interest rate than your credit cards can also give you a leg up on repayment. Because personal loans have set terms and a set repayment schedule, you will know exactly when you’ll be free of credit card debt.

Be Debt-Free in the New Year

At City Bank, our goal is to help you achieve yours. Call us today at (800) OUR-BANK so we can discuss your needs.