How to Eliminate Household Credit Card Debt

Are your credit cards driving you crazy? Here is a systematic procedure for eliminating monthly credit card debt for people holding multiple credit cards. The key to success is self-discipline to attain the goal of reducing your credit balance to zero. I know it works, because I did it in the 90’s. Take this opportunity to eliminate your debt, using the following steps.

Difficulty: Moderately Easy

Instructions

1. Arrange your credit card debt in descending order from the highest balance to the lowest.

2. Pay off the lowest balance first. This is the easiest card to eliminate. It requires paying more on the principal, preferably doubling up on the outstanding balance, if possible.

3. Retire that credit card and do not use after paying the balance in full

4. Apply the monthly payment spent on the previous card to the next larger balance, also paying the same payment on the card as before. This will increase the rate of eliminating the balance of the second credit card. Continue the procedure until you eliminate this card.

5. Follow this piggyback process with funds provided on the first two credit cards, applying them to the next outstanding credit card balance.

6. Maintain this process until you have eliminated all credit cards.

Tips & Warnings

• Graph your progress: total outstanding balance versus time. This builds incentive
• Keep one credit card for emergency only.
• Do not take on any more credit cards while performing this exercise.

Resources

• How to Eliminate Household Credit Card Debt

[bellerose]

on 9/15/2009 Good tips. Getting rid of multiple monthly bills with high interest rates certainly simplifies life a lot. 5*

[naturenut]

on 7/6/2009 Great tips! 5*

[DrDanny]

on 5/31/2009 Great article! 5*