How to Negotiate Paying Off Credit Card Balances With Cash

Credit cards can be a great tool to help us get things we need when we don't have money directly on hand. It is important however, to make sure that we do not get into trouble by spending money that we do no have. This is why when we start to get credit card debt, we need to put the cards away and start using cash to pay off our credit card balances. Doing this can help you recover from impending debt and save your credit history.

Instructions

1

Collect all of your credit cards and the outstanding balances on each of the cards. Understand exactly where your credit card debt stands, the balance on each of the cards, and the amount of interest which each card is being charged. Get rid of all of the cards, whether that means cutting the cards up, locking them away, or leaving them in a safe deposit box. Put them somewhere that you cannot access them except for emergencies and leave them there.

2

Use cash for all of your future spending. Go to the bank and get a debit card if you do not want to carry about large amounts of cash. This can give you the ability to still use a card to make payments without having to worry about charging money which you no longer have. As long as you stop spending money that you don't have, you should be able to start paying down your credit cards.

3

Pay off your credit cards every month. You can use different strategies to do this. You could transfer all of your debt to one card, making it easier to pay. You could pay off the smallest card first, making minimum payments on the subsequent cards. Paying off the card with the highest interest rates could also be smarter, helping you to cut the amount of interest which you have to pay over time.

4

Decide on a plan of action and stick to it. Only spend money that you actually have and leave your cards away except for extreme emergencies. Paying off your credit card debt will do you no good if you keep adding up the charges on the cards.

5

Refrain from using multiple cards in the future. Once you pay off your credit card debt, either stop using cards altogether or use only one credit card. This can help you to keep your debt low and the cash-only basis can help you manage your financial life to an even easier degree.