How to Make Credit Card Debt Disappear

If you let your credit card debt climb out of control, you might want to make it disappear. Because such unsecured loans often include high interest rates, your finances may incur more damage due to credit cards than to any other type of debt. It's not fast or easy to eliminate all of it. Therefore, making these high payments disappear requires the creation of a plan of attack and the financial discipline to meet your goals.

Instructions

1

Put your credit cards away and stop using them. If the temptation to pull them out at the cash register persists, then cut them up into little pieces and throw them away.

2

Make a list of all of your credit card debt. Look at each of your statements and determine which card has the highest interest rate. This information usually is listed at the end of your bill.

3

Compare your monthly expenses with your income. Calculate your monthly expenses including rent, car loans, food, gas, clothing, entertainment, utilities, cell phone and any other recurring bills that you have. Add these expenses together to determine your total monthly needs. Next, calculate your monthly income, including money from your job, contract work you do and any extra payments you receive each month from other sources. Add your income figures together to determine the total. Subtract your tally of monthly expenses from your monthly income. The amount you have left over will be used to make your credit card debt disappear.

4

Increase your income by taking on a second job during the time that you are working to reduce your credit card debt. Add your extra income to the total amount that you calculated in Step 3.

5

Pay the minimum monthly credit card payments on all of your accounts, except the one that you determined to have the highest interest rate in Step 2. You will pay off as much as possible on that card (minimum payment plus anything you have left over after paying your other bills). Continuing to keep your other accounts current saves you money in fees and helps your credit rating, too.

6

Pay as much as possible each month toward your credit card account with the highest interest rate until that balance is down to zero. You will save the most money in interest payments after this bill disappears.

7

Repeat Steps 2 through 6 until all of your credit card account balances have been paid off.