Rules on How to Pay Off Your Credit Cards Fast

Credit card debt can seem like a never ending cycle and, while some fall into debt due to excessive spending habits, others must rely on credit cards to meet basic needs. But even if you have several thousands of dollars of credit card debt, there are ways to quickly pay off the card. Paying off debt can relieve financial stress and gradually improve your credit rating.

Instructions

1

Review your personal budget to assess disposable income. Disposable or extra income is needed to pay off credit cards fast. Make a list of your monthly expenses such as rent or mortgage, utilities, transportation, food, debt payments and insurances. Subtract this total from your monthly take-home pay to see how much extra you have each month.

2

Resolve to apply a certain amount of your income to debt each month. If you have an additional $400 a month after paying all your expenses, apply this amount to your credit card balances instead of spending it on shopping, entertainment or dining out. An extra $400 can pay off a $1,200 balance in approximately three months.

3

Stop accumulating new charges. You can't pay off credit card debt if you're constantly using your cards. Keep credit cards at home locked in a drawer or safe or, if necessary, grab scissors and destroy the credit cards.

4

Ask for a lower interest rate. A high interest rate can make paying off a credit card challenging. Contact your credit card company and ask them to review your account. They may lower your interest rate if you have good credit and a good payment history. With a lower interest rate, a larger portion of your payments go toward reducing your actual credit card balance.

5

Borrow from your personal savings or retirement account. Take money out of your savings account to quickly pay off credit card debt, and then use your additional income each month to replenish your account.

6

Get rid of items that you no longer use. A huge yard sale or placing a classified ad for personal items you don't need can help you acquire cash to pay off your credit cards fast. Sell furniture, an old wedding gown, electronics, appliances or jewelry for quick cash.