How to Pay Off Your High Interest Credit Card Debt and keep it paid off

With interest rates on credit cards typically 14 - 25% you cannot afford to carry credit card debt for the long term. Get out now by following these steps.

Difficulty: Moderate

Instructions

Things You'll Need:

• Discipline
• A Budget

1. Cut up (do not cancel) all your credit cards except one, preferrably one that is the lowest interest rate and still has an available balance.

2. Set and stick to a budget. Do not exceed you budget, that's probably what got you here in the first place.

3. Determine the highest interest debt that you have, look at your credit card statements and pick the one with the highest APR. Put as much money into paying this one off as you can. Pay just the minimums on the remainder of your debt.

4. One you pay off your highest debt card, start paying off the next highest, contributing your excess money each month to paying it off. Continue this process until all your cards are paid off. This may sound simple, but it will take time, and discipline. If you cannot control your spending, you will be in the same situation.

Tips & Warnings

• When you pay off one card, add the minimum payment on the second card to the amount you are now paying. For instance if you minimum payment is $25 and you paid off your other card $100 per month, pay $125 per month. You should have room in your budget to do this, and you will pay off you second card faster. The third card you'll be paying off at $150 per month, etc.
• Don't fall for "low interest" balance transfers without reading the fine print. Often there is a transaction fee, and if you are late even once they reserve the right to bump up the rate.