How to Pay Off Credit Card DebtPosted on February 1, 2011
Paying off your debt is critical to getting back on your feet financially. This requires self-discipline, willpower and commitment. Here are some tips to help you do it fast.
Pay The Card With The Highest Interest First
If you have several cards with varying interest rates, it is best to pay off the one with the highest interest rates first.
Once you have paid off that card, focus on the other cards. Some people focus on the higher balance first, but the card that is costing you the most is the one with the highest interest.
Get Rid Of Credit Cards With Your Savings
If you have savings, it is probably beneficial to use it to pay off your debts. It makes no sense to have large amounts of savings and large debts with high interest.
Obtain 0% Interest Offers
If you receive credit card offers with 0% interest, you should apply. There may be a fee for transferring balances, but it may be worth it. In the time period where you have 0% interest, try to pay off all or most of the balance. If you have cards with good credit history, keep them. Those cards will help your credit score.
Pay More than the Minimum Payments
Making only the minimum payment will keep you in debt for a very long time. You end up paying the interest and not the balance.