If you want to get rid of your credit card debt, first you need to get organized. Taking care of someof the things like the recently unpaid bills of your each credit card that you have to pay and get the account statements of your each card is really important. In this way, you get all the interest rate strategies or minimum and maximum payments. It would be great if can take a review of your credit card statements and then calculate all the balances of your each card and check how much balance you have.
It is important to create a monthly budgeting like, from all of this you will clearly aware of your debt situation and how much revenues and expenses are on this month. So a clear picture of you all finances come after budgeting. From this you start focusing on saving and reducing the debts.
After that you have to reduce the expenses or the extra expenses like you can make deals at home instead of eating out and not buy expensive drinks or coffee. And also take a look on your fixed expenses too. Because if you want to reduce the expense. You can find out the roommate and walk more to spend on petrol.By doing all this you start lower spending and you find additional income every month. So apply some the additional income to you credit cards and save some of the income for any uncertainty.
Making a list:
Do one more thing, make a list of your balances, interest and fees of every month and check the anticipated fees and make them sure that your payments have been received and credited to account.
Paying off amount of the highest interest rate card:
Now pay off the card with the highest interest rate first because when you pay this off your more than half tension will be removed so this will also reduce your debt and on the other remaining cards you will be paying lower interest.
After this go to your creditors and ask them for a lower interest rate even if you have poor credit score don’t hesitate for asking the reduction of rate and if they agree this will give you the more saving. When you call each of your creditors make them sure that if they won’t reduce the interest you can switch off the company. And if they agree to lower your rate, ask others to match their competitors. Now consider a balance transfer credit card they have less charges sometimes 0% on balances transfer from other credit cards. Because they have low interest rate in introductory period of 12-24 months so these can be a great way to quickly reduce your interest rate, and therefore your overall payment.
Consider a debt consolidation loan this involves taking out an additional loan, such as a line of credit with a lower interest rate, and transferring your credit card balances to that loan. This has the added benefit of rolling all your credit card payments into one simple payment. But call your bank and ask for options in this regard, but be very aware of the risks
Apply saving to your credit card debt,Obviously when you have a saving account you can reduce your interest payments and this is one of the effective way of controlling interest payment from your overall balance, so this can effectively save money even while when you have large interest to pay this can control from your overall balance.
Well if you pay minimum balance on time of each credit card then you will not get any problem or this thing also maintains the good credit rating and avoiding additional late fees that will add to your debt. But remember that minimum payments will not reduce debt instead it helps to avoid late fees which can add to your overall debt.