10 Ways to Reduce Credit Card Debts

image of credit cards

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  1. Know where you stand: Write down all debts against each credit card and their interest rates. Make a spreadsheet and track your progress on payments and balance. Google docs are good tools to accomplish this.
  2. Transfer balance to low interest card:  If you have good credit, you should receive offers to transfer balances at low interest rates. You can also call your credit card company to see if they have low interest rates. Transfer balances to low interest cards from higher interest cards. Once you complete balance transfer, make sure to pay at the same amount every month or higher. This will help to reduce balance of your debt.
  3. Reduce spending: Watch your budget and reduce cost wherever possible. Eating out, buying costly items, driving unnecessarily, using expensive phone plans are some of the things you can avoid. Learn how to save money on phone, car, and food. You should use the saved money towards the payments of your credit card.
  4. Make a goal: Make a reasonable goal to pay off your credit cards. You can use online calculators to calculate the amount you need to pay every month to pay off the full balance.
  5. Use cards with rewards:   There are credit cards which give cash back. Chase bank, Discover Card, Capital One and Bank of America gives cash back. Use this card for your everyday purchase and pay off the balance on your statement every month. Use the money from cask back to make extra payment to your other credit cards.
  6. Get a part time job: Get a part time job and earn some extra money to make additional payments towards your credit cards.
  7. Pay more to highest interest card:  Pay the highest amount to the card with the highest interest rate. This will save you money on interest.
  8. Sell extra items and pay down credit card loan:  If you have items at home you are not using, sell them and use the money to make extra payments to your credit cards.
  9. Be a do it yourselfer: Learn to repair things at your home. Easy things like changing oil and brake on your car, cooking at home will save significant amount of money. Contribute to the payments towards your credit cards with the money you saved.
  10. Use tax refund towards your payment: Use money from your tax return towards the extra payments to your credit cards.

We think that if you follow the steps above, you will be debt free quickly.

Posted in Credit Card