How to Eliminate Your Growing Credit Card Debt

Too many credit card users have lived in debt so long, they regard debt-free living as virtually impossible. Adding to the hopelessness is an average interest rate of 10 to 30 percent and income that cannot keep pace, forcing consumers to make only minimum payments a clear prescription for long-term debt. If this is your situation, realize that a strategy does exist that will enable you to corral your debt and eventually eliminate it completely.

Instructions

1

Try to get your interest rates lowered. As you embark upon this strategy, call the credit card companies and request an interest rate reduction. Some credit lenders will and some will not. Any reductions will hasten the elimination of your debt.

2

Rank your cards from highest interest rate to lowest. You want to tackle the highest first and pay off your cards in descending order. The card with the highest interest rate costs you the most money; thus, it is wise to work on eliminating this one first.

3

Pay as much as you can above the minimum on the high-interest card while paying exactly the minimum on all your other cards. Continue this tactic until the high interest rate card is paid off. Also, never make a late payment because the resulting fee will set you back to square one.

4

Repeat the process. When you have paid off the highest-interest card, follow the same process for the card with the second-highest interest rate while continuing to pay the minimum on the others. Do this card-by-card until all are paid in full.