How to Decrease the Amount Owed on Credit Cards

If looking at your credit card statement each month causes you to panic, then it is time to decrease the amount you owe on your credit cards. Credit card debt is a revolving debt that increases because of the interest payment added. It also reduces your monthly disposable income because you are paying off items bought in the past. By taking drastic steps now and following them until the credit cards are paid off, you can build a solid financial future for yourself.

Instructions

1

Stop charging items on your credit card. Remove all credit cards from your wallet and put them into a plastic container. Fill the container with water and place it in the freezer.

2

Call the credit card company. Find the number on your statement. Ask for a supervisor and request a reduction on your interest rate. Point out the long history you have with the company and the on-time payments. Accept any reduction that is offered. Repeat for each credit card you own.

3

Review your credit card statements. Find out which card has the highest interest payment per month. List the cards by the highest to the lowest interest payments.

4

Increase the amount of the monthly payment you send on the highest interest credit card. Double up on your minimum payments or send two minimum payments per month on this card. Pay the minimum on the other cards until the highest interest card is paid in full. Repeat the procedure down the list, always paying more on the highest interest credit card.

5

Transfer all extra money toward your credit card debts. Put birthday and holiday cash gifts toward paying the highest interest credit card bills.