-
Step 1
The first step to reduce your credit card debt by yourself is to sum up all outstanding credit card debts you have acquired over the years. Take the total amount owed and the monthly interest rate for each credit card you have.
-
Step 2
Once you have the totals for each you have several options to reduce the debt. The first option to reduce your credit card debt is to take a look and see if any of your current credit card companies offer any special on balance transfers. What this means, is that you will receive a lower interest rate (sometimes 0%) for six months to a year on all balance transfers.
If your current credit card companies don't offer this you should shop around and contact other card companies. If you open a new credit card for this be sure to close an old one. Any more than two credit card accounts open in your personal name can damage to your credit score. -
Step 3
If you want to have a lower interest rate for a period of time longer than the special is that offers six months to a year, you can also look into a personal loan or a equity line on your home from a bank. Banks loan rates can be five to six times smaller than credit card company offers. This will allow you to focus more on paying the principal down and less on wasting your money away on high interest payments.
One thing to keep in mind to reduce your credit card debt is to look at lower interest rates that offer a fixed rate or have a maximum on your adjusted rate. This can save you thousands over your lifetime.
