The key to reducing credit card debt is either to pay off your balances every month or—when you can’t do that—make higher-than-minimum payments without adding to your balance. Although this may seem like a challenge if your credit card debt is very high, a determined and disciplined approach will go a long way toward helping you succeed.

In addition, you can reduce your credit card debt by simply becoming more careful about where your money goes. Take a look at the following strategies for reducing your dependence on credit cards.

Start an emergency fund account online. Putting money in savings for emergencies—in a savings account, money market account, certificate of deposit (CD), or wherever it makes sense for you—may give you a way to tackle unexpected expenses without saddling yourself with more credit card debt. Online banks often offer higher interest rates than traditional banks, helping make the most of your money.

Use a debit card. Because debit cards pull money directly from your checking account, you may be less likely to spend more than you have—which makes them a great way to keep your spending in check.

Check out interest-bearing checking accounts. The Ally Bank Interest Checking Account is designed to be simple, convenient and rewarding, so that your everyday source of cash can perform smarter while you’re trying to pay down your credit card debt.

Sign up for balance alerts. Many banks, including Ally Bank, offer balance alerts so that you are notified when your account balance reaches a pre-determined amount. These notifications can help you better pace yourself and follow your budget.

Ally Bank is committed to helping you make smart financial decisions. We offer a variety of savings products to help you reach your goals. You can open and fund any account with any amount and get among the most competitive interest rates in the country. We compound interest daily to help your balance grow faster and your deposits are FDIC-insured up to the maximum amount allowed by law. Learn more at or call live, 24/7 customer care at 877-247-ALLY (2559) today.

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