How to Manage Credit Card Debt with a Simple DIY Plan

Although financial advisers and debt management businesses provide services to help individuals handle their debt, you should first try managing your debt on your own. That way, all of your money can go toward paying your debt rather than paying the professionals. All credit card debt management strategies come down to one major principle: paying more than the minimum on your bills. This accelerates your credit card debt payment and cuts down on how much interest you have to pay.

Instructions

1

Call each of your credit card companies and ask for a lower interest rate. This does not always work, but when it does, it reduces your interest rate so more of your money goes toward paying down the balance.

2

Create a table representing all of your credit cards. For each card, list the name of the card, the interest rate, the current outstanding balance, the current minimum payment and the due date. If the card has more than one interest rate, such as a rate for cash advances and a lower one for purchases, list the highest rate you are paying.

3

Add the minimum payments to find your total minimum payment. Add to this any additional money you can afford to put toward credit card payments every month. The more you add, the faster you pay off your debt. The sum is your total monthly payment.

4

Pay the minimum on each of your credit card bills every month, and then pay the remainder of your total monthly payment toward the card with the highest interest rate.

5

Switch your extra payment to the card with the next-highest interest rate when you pay off the balance on the card with the highest interest rate. Continue until all of your cards are paid off.