How to Pay Off a Huge Amount of Credit Card Debt in Six Months?

A large amount of credit card debt can be overwhelming, especially if you are dealing with defaulted interest rates, late and over limit fees and finance charges larger than your minimum payment. Paying off credit card debt requires a solid budget plan and a bit of math to figure out the order in which to pay your credit cards off.

Instructions

1

Write a list of your credit card accounts, credit card balances and interest rates for all of your cards.

2

Call the credit card company that issued you the lowest interest rate card. Ask if you can transfer the balance of the highest interest card onto the lowest interest card, if you have room on it. Balance transferring allows you to pay off your debt at a lowest interest rate, costing you less money over the six months.

3

Divide your total credit card debt amount into six equal parts. The actual amount you need to repay in six months will be slightly higher due to finance charges. This figure gives you a ballpark figure that you need to put towards your credit card debt monthy.

4

Examine your budget. Try to cut out as many unnecessary expenses as possible so you have extra money to put towards paying off your credit cards as quickly as possible.

5

Pay your highest interest credit card first until it is completely paid off. Continue paying off the cards in order of interest rate. The only reason you may want to consider paying off a lower interest credit card first is if the balance is significantly higher than your high interest cards.

6

Talk to your bank or credit union about a debt consolidation loan if you are unable to cut enough expenses or get enough money together to pay off your credit card debt in six months. Debt consolidation loans often have lower rates than your credit cards. You also only need to make one payment per month instead of one for every credit card.