How to Consolidate Credit Card Debt to Pay It Down Quicker

It is easy to get into credit card debt, especially when emergencies happen like medical expenses and car repairs. Getting out of credit card debt, however, can be difficult but not impossible. By setting a monthly budget, eliminating unnecessary expenses and consolidating your credit card bills, you can pay down your credit card debt.

Instructions

1




Re-evaluate your income and expenses to see where you are overspending.

Examine your spending habits and cut back on monthly expenses that are unnecessary. If you cannot live on your monthly income, it is time to cut back on extras like extended cable television, dining out, gym memberships or weekend movies. Pare down your expenses to fit your income so you won't need to use credit cards for everyday living expenses.

2

Lock up the credit cards. You have to stop using your credit cards to begin the process of paying them off. Lock up all your cards except one, and only use that for emergency purposes.

3




Consolidate as much debt as possible on the account with the lowest interest rate.

Organize your credit card debt. Look at each credit card statement and place them in order of highest interest rate to lowest. Consolidate as much of the high interest debt as possible on the lowest interest rate card. If you've received any offers in the mail for a zero percent credit card, you may want to consider consolidating all your cards on that. Once you have consolidated the bills onto one or two credit cards, you will be able to pay down the balances faster.

4




Pay off the credit card with the highest interest rate first.

Make higher payments each month on the highest interest card, while making the minimum payment on the lowest interest accounts. Once you have paid off the highest interest card, you can begin making higher payments on the next highest interest card. This is called the snowball effect. This way you can eliminate your debt while paying less interest on the balances. This may take one year or several years, but the debt will go down over time.

5




Start saving money so you don't have to use credit cards for emergencies.

Start saving money once your credit card debt is paid off. Instead of going back to your old habits of overspending, put aside money each month so you will have it in the event of an emergency and won't have to rely on credit cards.