The Fastest Most Efficient Ways to Pay Off Credit Cards

Paying off debt is one thing that people strive for, especially in tough economic times. By paying off debt, you can live on a lower income and not have all the worries that go along with trying to cover expenses each month. While it does take some time, depending on how many credit cards you have, you can pay off your credit cards quickly and efficiently if you work hard.

Instructions

1

Call the credit card companies that you owe and explain your financial situation to them. Ask them if they would be willing to reduce your interest rate. Keep in mind, many credit card companies would much rather work with you than risk losing a lot of money because of a bankruptcy or a default on an account.

2

Order your credit card bills from least amount owed to the greatest amount. Add up all the minimum payments on all the credit cards owed each month.

3

Examine your finances searching for opportunities to save money. Eliminate all unnecessary expenditures for the time being and put that saved money toward paying off your credit card debt. For example, do not go out to eat for one month and put all that saved money towards paying off the debt.

4

Start with the credit card with the least amount owed and pay them more than the minimum amount each month, while making the minimum payments on all other credit cards. Pay the first card off and take the money you had been applying to that credit card payment and apply it to the next smallest debt. Keep working your way through all of your debts. Do not make any new charges to the cards during this time.

5

Finagle your finances a little bit if necessary. Transfer credit cards with high interest rates to a new credit card without interest. Set up a payment plan so that you can pay off that debt within the allotted time with no interest. For example, if you have a $1500 balance with a 28 percent interest on one card, transfer that $1500 to a credit card with no interest for 12 months. Divide the 1500 by 12 to see how much you have to pay each month to pay that credit card debt off in a year.