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Step 1
Stop using credit cards. The only way to pay down the credit card debt you have is to stop increasing it in the first place. Develop a monthly budget and stick with it. Use a cash-only system. This means that if you do not have the cash to make the purchase, you do not purchase it. In addition, put aside $1000 to $2000 as an emergency fund to pay for unexpected expenses not within your budget.
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Step 2
Pay more than the minimum payment on credit cards. The average credit-card balance may take years to pay off if you only pay the minimum, due to compound interest charges. Those with an APR of 18 percent with a $2000 balance making only minimum payments will pay that debt for more than 25 years. No matter which method of paying down credit-card debt you use, it is imperative to pay more than the minimum payment.
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Step 3
Pay off the card with the highest interest rate first. Paying down the high-interest-rate credit card will also help improve your credit score.
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Step 4
Stay motivated by paying the lowest balance first. Although paying the highest interest rate debt is the least expensive method to pay down debt, many people find that paying the lowest balance first will keep them motivated, since they will see their number of debts reduce faster. In addition, with fewer debts, you will improve your credit score. Choose either to pay the highest interest rate or the lowest balance first.
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Step 5
Keep at it. Most people will need months if not years to repay all of the debt they owe. By making consistent, on time payments to each of your lenders, you will demonstrate to the credit-card bureaus that you are a reliable payer. This will improve your credit score over time, especially as your debt dwindles.
