How to Lower Credit Card Debt

Many people are looking for an easy way to lower credit card debt. Some people get extra jobs so that they will have additional income to send off to the credit card companies each month. There is an easier way! Making more than one payment per month is the fastest way to lower credit card debt.

Difficulty: Easy

Instructions

Things You'll Need:

• online banking

1. Sign Up for Online Banking - Of the steps outlined in this article, actually signing up for online banking is the most challenging. This isn't because it is hard to do, but because many people are worried about having their identities stolen. Research has shown that you have a higher risk when submitting payments via check than you do when posting payments on your bank's website. I have used online banking for the past two years without any problems. It is my preferred method of payment and I even save $0.42 on the stamp.

2. Determine how much you want to pay - Making multiple payments per month, in order to lower credit card debt, works most effectively when you make a payment once every 14 days. If your monthly minimum is $100, sending $50 each every two weeks will help you pay off your debt faster and will save you hundreds, if not thousands, of dollars in interest.

3. Commit to making multiple payments for 3 months - Do not give up too early with this system. It works extremely well if you have high-dollar, high-interest balances. If you have smaller amounts outstanding, you will not notice the difference as much. This should not, however, discourage you from trying this method. Please remember that since you will be paying only half of the minimum payment every 14 days, if you get behind, you will get charged late fees and penalties.

4. Reassess your progress - After 3 months, reassess your progress and determine whether or not this system is for you. It takes a bit of dedication and hard work to remember to make multiple payments each month. Making multiple payments is an effective method to lower credit card debt.

Tips & Warnings

• There is no sign-up required to send your credit card companies more than one payment per month. Check with your mortgage company BEFORE sending in more than one mortgage payment, as I am sure there are forms you have to sign to do this with them.
• Do not fall behind in your bi-weekly payments. You will get hit with late fees and other penalties if you do.

Resources

• How to Reduce Debt
• Earn Money By Writing Articles
• Become Debt Free

[pianistic]

on 11/26/2008 Great advice!