How to Pay Off Credit Card Debt Quicker
You will learn how to reduce your credit card debt.
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Instructions
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Gather all your bills and credit card statements. You will need to put together a monthly budget. Budget for the minimum payment on each. Be sure to include the following in your budget: Rent/Mortgage, phone, internet, tv, water, electricity, garbage, debt, SAVINGS, car payment, insurance, and money for things like gas, food and entertainment. Be realistic to what you NEED. Make sure you save even if it's a little. This will help you stay on budget when something unexpected comes up. You will also feel better about your situation when you have a paycheck in your savings account.
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Make a list of each credit card name, balance, minimum payment and the APR. Your APR is usually listed about halfway down the statement.
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On your budget, pay the minimum amount due on each credit card except the one with the highest APR. Put any money left in your budget towards that credit card. In the long run, this will save you a substantial amount of interest. Make sure you check out the tips section for a few more ways to pay them off quicker.
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Tips & Warnings
Always pay your bills on time. If you pay them on time, continue to bring your balances down and lower the high interest ones first, your credit score will improve dramatically.
When you begin to improve your credit score, call all of your credit card companies and ask them to lower your APR. If you have improved your credit score, many will lower your APR and sometimes by a lot.
Look at other credit cards to see if you can get a lower APR. Transfer high interest debt to lower cards. Be very careful not to apply for cards you will not be approved for as this will damage your credit score.
When you pay the card off, cut it up so you won't use it again but do not close the account. If you close the account, you will have less credit available. This will increase your percentage of debt to credit and your credit score will suffer.
If you cannot fit all your expenses in your budget, you need to seek the help of a professional. Not all credit counselors are bad.
