subject: Tips To Paying Off Credit Card Debt [print this page] Carrying debt on credit cards can get very expensive very quickly, especially if you dont have a very good credit score. Its not uncommon to be paying an interest rate of 18%, which is quite significant. That means youll be paying $15 in interest each month for each $1,000 of debt. If you owe $10,000, thats $150 per month in interest!
Many people these days are trying to pay off their credit card debt and get back onto a stable monthly budget that doesnt require the use of additional credit. There are plenty of strategies, but they all rely on some basic techniques:
1. List your debts before you start so you know what you owe. Take note of the balance, minimum payment, and interest rate on each credit card. Based on this information, choose the credit card you want to pay off first. Most people either select the lowest balance or the highest interest rate.
2. Make the minimum payment on all credit cards, but then put an extra payment on the card you most want to pay off. Focusing your energy on one card in particular will help you make the fastest measurable progress toward getting rid of your debt.
3. Use a debt calculator to figure out how long it will take you to pay off your credit cards on your current schedule. If you want to pay them off sooner, this information can be motivation to find more money in your budget to put toward debt repayment.
4. Dont get caught up in following balance transfer offers. Although you can transfer a balance to lower your interest rate, you have to pay a fee for the privilege and the rock-bottom interest rate is only temporary. If you do transfer a balance, focus on paying off credit cards aggressively while you have the low interest rate so you have less debt, not just a lower rate.
Paying off your credit card debt will help increase your credit score and put you in a better financial position, so get started today!
For more information, go to Credit Cards at http://www.creditnowusa.com/Credit-Cards
