How to Get Rid of Credit Card Debt Quickly

Credit cards are beneficial and they've helped numerous people build a credit history. Once you've established a good rating, you can obtain a mortgage loan or auto loan and receive the best financing. Unfortunately, some people can't control their spending, in which they use credit cards unnecessarily. This can lead to excessive debt, and it can take years to pay down the balance. However, there are ways to get rid of credit card debt quickly. As a result, you'll increase your disposable income and boost your FICO score.

Instructions

1

Calculate your debts. Request a copy of your free credit report or gather your monthly credit card statements. Review your report and statements and write down the amount owed to each creditor. Add the amounts to learn your total debt.

2

Create a budget. To get rid of credit card debt quickly, you'll need to put your disposable income towards your debt. Establish a personal budget. Write down all your monthly expenses (housing, transportation, food and miscellaneous). Subtract this amount from your take-home income. Rather than spend the leftover money on entertainment, dining out or shopping, use this money to reduce your credit card balances.

3

Look for additional employment. If you don't have disposable income after paying your monthly expenses, consider ways to earn extra money. Get a part-time job or start a small home based business. You can start an office cleaning business, pet care business or lawn care business with little investment.

4

Ask for a reduced interest rate. Contact your credit card companies and ask for a lower interest rate. If you've been a loyal customer and you have a good payment history, they might approve your request. Once you have a lower rate, begin doubling or tripling your minimum monthly payments.

5

Borrow money from your home's equity. Homeowners can refinance their home loan and get cash to pay off their outstanding debts. Because refinances are expensive, some owners choose a home equity loan or home equity line of credit. These loans allow owners to tap into their equity and use the money for any purpose. Use the money to pay off your credit card debt and then pay back the money at a lower interest rate.