Things You'll Need:
- income
- credit card statements
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Step 1
The first step is to look at all your credit card billing statements, writing down the balance, the minimum payment, and the interest each card is charging you.
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Step 2
Now, pay the mimimum payment on all the cards except the one with the highest interest rate. For that card, determine how much more than the minimum payment you can afford, and pay that every month until that first card is paid off.
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Step 3
After your first card is paid off, address the card with the second highest interest rate. Now, however, pay the minimum on any remaining cards, but with the payment on the new highest interest card getting the amount that had been paid against the card that is now paid off. For example, if you had been paying a $20 minimum payment, plus an additional $20 against the card you have now paid off, you will take that total payment of $40 and pay it in addition to the minimum payment on the card that now has the highest interest, so if that card has a $20 minimum payment, you will pay that as well as the $40 you had been paying previously, for a total payment of $60 a month towards that card.
The point of this is to pay as much money towards the cards as you can afford, and if you were able to pay that before, you can still pay it now, and since the first card is paid off, that money should now be directed to the one with the second highest interest rate. -
Step 4
When that second card is paid off, do the same thing with the next one, until all your credit cards are paid off.
