How to Pay Off Multiple Credit Cards

In a time when so many people are struggling financially, individuals are getting deeper in debt and wondering how they will ever get their heads above water again. Whether you have just a few credit cards or an entire wallet full that you need to pay down, there is a way.

Instructions

1

Make a list. Create a list of your credit card debts. Arrange the list of debts in order from the highest interest rating to the lowest. Include information about the total debt owed on each card, the minimum monthly payment and the due date. This will act as your easy reference sheet as you're paying off multiple credit cards.

2

Calculate the amount of extra money you have every month. Total your monthly bills, groceries and other expenses, and subtract them from your monthly income. Take advantage of the debt calculator at CGi Money (see Resources).
Once you know how much extra money is coming in, subtract your credit card debt (your monthly minimum payments). Whatever is left can be used to pay down your debt. Pay as much as you can on the highest interest rate card; once this card is paid off, transfer that extra amount to the next highest interest rate card.

3

Consider debt consolidation. Another way to pay off multiple credit cards is debt consolidation. You may choose to pay down the balances of your credit cards using one higher limit, lower interest rate credit card. This will reduce the number of bills to one a month and may save you money in the long run. Transfer everything to a lower-rate credit card, or you will not save money.

4

Earn extra money to pay down your multiple credit card debt quicker. Ask for more hours at work, get a second job or ask for a pay raise. There are other ways to make extra money. Sell your unwanted items on eBay, Craigslist or through your local newspaper. Have a garage sale and get rid of clutter, while earning a few dollars. Freelance online by writing articles, designing logos or proofreading through websites such as www.Elance.com, www.GetaFreelancer.com or www.LogoTournament.com.

5

Cut your expenses. By cutting back, you save more money. Shop at secondhand and thrift stores, cook cheap meals, curtail eating out, make your own coffee at home and ask a talented friend to cut your hair or give you a manicure.