Credit card bills can grow until they make up the largest part of your monthly budget. You may be able to cut down on these bills if you are willing to make some phone calls or to adjust your personal finances. You should focus on lowering your interest rates and putting as much money as possible towards your credit card accounts. Those are the two main components to a good plan for cutting down credit card bills.
Step 1
Ask for an interest rate reduction from your credit card issuers. Many banks are raising interest rates, which adds to your bills by making it harder to pay down the principle. Ask for a rate reduction if you are a long-time customer with a good payment history.
Step 2
Find a credit card with a good introductory offer. You may be able to find a zero percent rate on balance transfers or another attractive offer. Transfer your balances from cards on which you are paying a higher rate. More of your money will go towards the principle, cutting down your balance and your bills.
Step 3
Pay down your credit card bills with your other assets. M. P. Dunleavy of MSN Money says it often makes sense to tap into your savings account and put a big chunk of money onto your credit card accounts with the highest interest rate or biggest balance. You will be able to pay down your bills more quickly and replenish your savings once they have been paid off.
Step 4
Use your home equity to consolidate your credit card bills. George Saenz of Bankrate says a home equity loan lets you move numerous credit card bills with different due dates into one loan with a fixed payment and a lower interest rate. Your balance will go down more quickly because more money is going to the actual balance rather than interest, and you will know the exact date your payments will be done.
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