Most Effective Way to Eliminate Credit Card Debt

Credit card debt not only causes stress, it can lower your credit score, reducing your chances of securing a mortgage or some other type of loan, or even getting a job. According to "The Complete Credit Repair Kit," the key to eliminating credit card debt is to look at your outstanding debt and prioritize your bills based on the amounts and the interest rates.

Instructions

1

Create a list of your credit cards, and number each debt based on the credit card's interest rate. The idea is to tackle the credit cards with highest interest rates first.

2

Call your creditor and set up an automatic payment plan. A payment plan allows you to pay a specific amount every month, which is automatically taken out of your checking or savings account. Not only does this guarantee you'll never be late, but it also proves to the creditor that you are responsible .

3

Pay double the minimum amount required. Minimum payments barely make a dent in your overall credit card debt, as interest is continually added to your account balance each month.

4

Transfer credit card debt to a lower-interest credit card. Balances on high-interest credit cards are difficult to pay off due to the interest rate, but can be dramatically reduced in overall cost when transferred to a low-interest card.