If you have accumulated a large amount of credit card debt, you probably want to consider ways to pay the debt as quickly as possible. High monthly credit card bills can put a substantial hole in your monthly budget. Making the minimum payment on credit cards each month will not make a dent in the balance owed. Once the debt is paid, you should consider paying for most items in cash to avoid facing this problem again in the future.
Step 1
Write down the balance of each credit card and the interest rate for each particular card. Work on paying the card off with the highest interest rate; continue to pay the minimum on the other cards. Once the highest interest rate card is paid off, move on to the next highest card.
Step 2
Call each of your credit card companies to negotiate your annual percentage rate. To avoid losing your business, companies will work with you to lower the current rate as long as your account is in good standing.
Step 3
Move your debt to a lower interest rate card. Another way you can get rid of credit card debt fast is to perform a balance transfer. Balance transfers will typically offer a low annual percentage rate. Make sure you check all interest rates associated with a balance transfer since the amount will likely increase after an introductory period.
Step 4
Access any extra money you have to pay off the credit card debt. If you have money in savings, a 401(k) plan or in bonds, you may want to cash these out to pay off credit card debt more quickly. Once the debt is paid, you will have more money available to work toward building these cash reserves again.
Tips and Warnings
- Remember to regularly check your credit report by going to the Annual Credit Report website. You can get a free report every 12 months.
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