How to Pay Off Credit Card Debit

Credit card debts are a huge personal financial issue for many people. Although credit cards often seem like a good idea because they provide a source of money when cash is tight, people often find themselves using credit not for emergencies, but for unnecessary expenses, such as entertainment and new wardrobes. With the fees, hidden charges and high interest rates that come with most credit cards, it can seem daunting to get yourself out of debt. However, you can do several things to pay off your credit cards.

Instructions

1

Stop using your credit cards once they are paid off, unless you are in a true emergency--do not use credit cards for impulse purchases or unnecessary expenses. Make it your goal to pay off your credit card balance completely each month.

2

Use a debt reduction calculator to help you gauge how long it will take to pay down your debt. Such tools are typically free from websites, such as CNN Money and Bankrate.

3

Alter your budget to cut down on unnecessary expenses so that you have more money to put toward your debt. Set a realistic budget. For instance, if you currently spend about $170 per month on eating out, cut that down to $115 so that you'll have an extra $55 each month to pay off your credit cards.

4

Pay more than the minimum each month--doing so will help in the long run because you won't pay as much in interest and credit card fees. For example, if your monthly payment is $175, pay at least $250. Every dollar over the minimum you can afford to pay will help you get out of debt sooner.

5

Live below your means to give you more money to sustain yourself on, so you won't have an excuse to stop aggressively paying down your debts. Since you will be paying more toward your credit cards, you will need to find money to pay for living expenses, meaning you need to either stop spending as much as you did before or make more money. Try taking your lunch to work, making your own coffee and going to free live music shows or theater performances for entertainment instead of pricey movies and concerts.

6

Transfer debt to your credit card with the lowest interest. Let's say you have two credit cards, one with an 11 percent interest rate, and another with a 19% interest rate. If the lower rate card is not maxed out, transferring as much debt from the higher rate card as possible will save you money and make it cheaper to pay down your debts.