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Step 1
The first step to reduce your credit card debt is to add up all of your outstanding credit card bills. Find the total owed and the interest rate for each.
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Step 2
Once you have the totals for each you have several options. The first option to reduce your credit card debt is to see if any of your current credit card companies offer a special on balance transfers. This means is that you will receive a low interest rate (sometimes 0%) for six months to a year on balance transfers.
If your current credit card companies do not offer this shop around. If you open a new credit card for this be sure to close an old one. Any more than two open credit card accounts can be harmful to your credit score. -
Step 3
If you want to have a lower interest rate for a period of time longer than the six months to a year specials offered you can also look into a personal loan or a equity line from a bank. Banks loan rates can be up to four times smaller than credit card companies. This will allow you to focus more on paying the principal and less onwasting your money away on interest.
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Step 4
One thing to keep in mind to reduce your credit card debt is to look at lower fixed interest rates or have a maximum on adjusted APR rates. This can save you thousands in the long run!
