How to Lower Your Credit Card Debt

July 21, 2008

Credit Card has become part of our day to day life, with so many benefits it has, it’s not easy to avoid purchasing on it and avoid Credit Card Debt. But there may be various alternatives to avoid Debt. These Steps explained in detail below could be so useful that if followed with proper guidelines and directions can surely lower your Debt. It’s nearly obvious that if you are an American then you must own a credit card and if you own a credit card then you have almost certainly got more than one card and if you own credit cards, there’s a great possibility that you owe a balance.


Here are ten steps to promptly minimize your total credit-card-debt:

1. Calculate the total debt you owe so that you can devise a plan accordingly.

2. Order your cards as per descending interest rates, with higher rate of interest card first.

3. By this time you better know which one of the cards has higher interest rate in comparison to the others! So start calling the Credit Card Company & ask them to lower the interest rates, this may sound comical but these things do work and if they refuse request made by you, contact the supervisor and plea again.

4. Rearrange your priority list in the similar downward order.

5. Check if there are any particular interest rates or promotional offers that might expire shortly. If you own a card with interest rate at 0% then it would be at the least rank in your priority list, but if changes occur in it after a month, it might get to the uppermost on the list pretty soon.

6. Now, prepare a second list – write down total balance you have on each and every card. Order this in descending manners as well.

7. Finally a third list. This process involves a little mathematics. Get the total balance from each card and divide the sum by total credit limit on the card. This gives you “debt-to-limit” percentage. This list will also be in descending order.

8. By this time, three lists are with you. Each one of the lists will probably be dissimilarly ordered. This step needs your decision that what is your most important objective to 1) get rid of debt as soon as possible, 2) pay as minute interest as feasible, or 3) improve your credit score?

9. If you desire for getting rid of the debt sooner then you should pay bare minimum balances on each and every card but the top ones from each of the first two lists (apparently while averting any new purchase on your card). If you wish to pay as least interest as possible then pay as much as feasible from the topmost card at the first list. If you want credit improvement then pay off the cards according to the order of the third list.

10. Maintain it! If you don’t accumulate new debt, and keep on paying down your cards according to the order of the lists we suggested, you’ll be surprised how speedy you can get rid of the credit card “monkeys” off your shoulders.

Finally, credit is not a bad obsession, but you need to be watchful when you are looking at getting a new credit card. Do a comparison among the variety of Credit Cards available.

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