How to Pay Off a Large Credit Card Debt

If you have a large credit card debt, whether on one card or on several, getting out of debt can look impossible. It can take a lot of money every month just to keep up with your payments. As interest charges add up, you can easily get deeper in debt if you keep charging and only pay the minimum. You need to form new habits if you want to retire large debts. This takes sacrifice and willpower. But others have succeeded, and you can, too.

Instructions

1

List your credit card debts. Jean Chatzky, finance writer and author of "Pay It Down," says you need to see exactly what you owe. Write the bank or lender, the total amount owed and the interest rate. Also write down the minimum monthly payment for each card.

2

Prioritize paying off your credit card debt. MSN Money's Liz Pulliam Weston says that families who succeeded in paying off large debts quickly could make the necessary sacrifices because they kept the goal firmly in mind.

3




Pay cash instead of using your cards.

Stop using your credit cards. Jane Bryant Quinn, author of "Making the Most of Your Money Now," considers this step crucial to getting out of debt. Using cash for most of your purchases will help with this. When you do not have more cash, stop shopping.

4

Reduce your living costs as much as you can. Weston describes families who reduced large debts on modest incomes by driving old cars, forgoing furniture purchases and canceling gym memberships. Other steps you can take include not purchasing new clothes, eliminating restaurant meals and doing your own yard work. If you need tools, household items or furniture, consider buying them used.

5

Reduce your credit card interest rates to save more money. Chatzky suggests calling the credit card companies' customer service numbers and asking for a rate reduction. If the representative refuses, ask to speak to a supervisor. If you still fail to get a rate reduction, she suggests finding a good balance transfer offer in the mail or from an Internet site such as Bankrate.com.

6

Put the extra money you found by reducing your living costs toward paying off the credit card with the highest interest rate. Pay the minimum on every debt, but put as much as you can toward the highest-rate debt. When you have paid it off, continue with the next highest, and so on.

7

Find even more money to put on your debts by taking on extra work or selling things you don't need. Look for a second job, or find handy work or babysitting in your neighborhood. Sell the RV or boat you don't use any more. Sell smaller items on the Internet or at a yard sale. Put the extra money from your second job and your sales on the credit card debt. The more you put toward your debt, the more you will save in interest and the faster your debt will disappear.