What Is the Quickest Way to Payoff High Credit Card Debt?

Credit card debt can get expensive in a hurry. With interest rates higher than other forms of debt, the interest expense can be quite high. With a calculated debt repayment plan, any borrower can repay high credit card interest debt in a timely manner.

List All Debts

Start any debt repaying plan by listing all the debts that are owed. List the debts in order from the smallest monthly payment to the largest. This list will come in handy when deciding which debts to repay first.

Budgeting

Find the funds to pay down debt by creating a realistic budget for your family. List out every expenditure from the previous month, using checking account statements as a base for information. Group each dollar spent into categories such as food, entertainment, housing, medical bills and debt repayment. Look for ways to reduce spending in each category and funnel the excess funds to debt repayment. Consider removing excess features from cell phone plans, cable and Internet bills. Create a realistic budget based upon your family's needs, as well.

Snowball Debt

Begin by paying any extra funds found in your budget towards the smallest monthly debt payment. Continue paying the minimum payment on all the other debts. Once you have paid the smallest debt in full, begin funneling the money to the next smallest monthly debt payment. Continue to snowball the payments to the next largest debt until all debts are paid in full.

Sucess

Note how long it takes you to succeed in your debt repayment plan. Avoid future debt by taking a few months and applying the money that you were paying towards debt repayment into a savings account. Once an emergency fund of three to six months salary is accumulated, begin to save towards retirement or other large expenses. Use savings to fund expenditures as opposed to debt.