Paying Off Credit Cards

Paying off credit cards requires a plan and a commitment to stick to the plan.

Step One: Determine an amount of money you spend for other things that you can devote to paying off credit cards. Perhaps you buy two soft drinks a day. Cut back to one, and use that extra money in your program to reduce or eliminate your credit card debt. We all waste a little money on "things" that could be used for this plan. So, come up with an amount of money that you can consistently use. Consistently means every month. This is where your commitment plays a large role. You simply set aside this amount of money every month; the money is no longer yours. It belongs to your plan of paying off credit cards.

Step Two: Make a list of all your credit cards and how much you owe on each one of them. Also write down how much you pay each month on that balance.

Step Three: Put your credit card list in order with the LOWEST balance at the top.

Step Four: Stop using your credit cards - except for emergency. At least, stop using the Sears MasterCard, the Shell Gas Card and any others you can. Emergencies happen. Let's go ahead and plan for them. If an unexpected and unwanted event puts you in a situation where you must use your credit card, go ahead and use it. Say, "darn," and stick with your program.

Step Five: Begin your paying off credit cards program by taking that extra amount of money you came up with in Step One. Let's say it is only $25.00. Instead of paying $45.00 on your Sears MasterCard, you begin paying $70.00 ($45.00 + $25.00). That's easy enough, isn't it?

With no more effort than that, your Sears credit card will be paid off in about a year. The more you are able to add to your monthly payment, the more quickly the debt will disappear.

When your balance with Sears reaches zero, attack the next card on your list, the Shell Gas Card. You have been paying $75.00 per month. Add to this the amount you were paying Sears, $70.00. Now you're paying Shell $145.00 per month, and that balance will disappear quickly...and you're still only using that "extra" $25.00 you originally found.

When the Shell balance reaches zero, attack Bank of America's balance. You were paying $55.00 per month, but we're now going to add what you were paying Shell, $145.00. Now you will be sending Bank of America $200 each month.

YOU can do this plan. Dont' get overaggressive and deny your family trips to the ballpark, Christmas gifts or any such thing. Use common sense, and Never Give Up!

Paying off credit cards will become a habit for you. And, we can all use a good habit, can't we?

SOMETHING ELSE TO THINK ABOUT: Should you consider getting a new credit card that let's you transfer old, high-interest balances to a 0% or low percent for 6, 12 or so months? You may want to take a look at our Featured Low Balance Transfer Credit Cards.