If you are looking for ways to manage your credit card debt and get your finances back in order, you should understand a few things about how credit works. Credit is not something that you just use to delay making payments, or because you think that the lower monthly payments means less money out of your pocket. Credit card debt management needs to be taken seriously and understood properly so that you can get rid of your debts.
Credit Card Debt Management Strategies
Pay More Than The Minimum
If you are able to do so, pay off more than the minimum amount that you owe on your credit card. Better yet, try to pay the full balance off before the end of the 30 day billing cycle. Doing so allows you to avoid paying interest on the things that you charge and allows you to not have to worry about making a payment each month because the bill is already paid in full. Even if you cannot pay off the full balance, paying more than the minimum reduces your balance and allows you to get ahead on your debt.
Lower Interest Rates Mean You Win
The easiest way to keep your credit card debt under control is to get a card with the lowest interest rate. Try going to a credit union as opposed to a bank, or a store credit card. You will usually get a lower interest rate on the card. You might not get the balance that you would like, but at least you won’t have a higher bill each month than you can afford. If you find that your interest rate is too high for your tastes, you can always transfer your balances to a lower interest credit card if you are eligible to do so. Debt consolidation can get you a lower interest rate, and put all of your credit balances into one payment and make it easier to pay off.
Pay Down The Highest Interest Card First
Take all of your cards and determine which one has the highest interest rate. Pay down that card first and get rid of the most expensive payment you have each month. As you pay down the balance on your first card, you can start paying more attention to your other cards because you will have more money each month to pay off your other balances. You can keep your payment the same, but change how much you allocate to each card each month as your balances and interest charges get to be lower and lower. This works really well no matter how many cards you have.
If you are looking for ways to pay down your debt, the best way is to list your debts, figure out how much you can afford to pay each month and then just pay the debts as they come due. There is nothing else you can do and no magic formula. The easiest way to manage your debts is to simply face the fact that you have bills to pay and pay them off as best you can in the least amount of time.
Finally, you could also look for some kind of credit card debt management program to with a for profit or non-profit company in order to help you with your needs.