Paying Off Credit Cards – An Easier Way To Do It

Pay off credit card debts easily by creating an effective plan and sticking to it.

10:33 01 April 2013

A lot of people have credit card debts. Everybody knows how to use them but unfortunately, not every single one of us knows how to pay them off. Paying for credit card debts more than you should can hurt your finances because of interest rates.

Here’s a simplified way on how to pay off your credit cards:

• First step is to figure out how much you owe on each credit card that you have. Take them all out from your wallet and list down the names of the card together with the amount that you owe. Then, arrange them according to the amount. The biggest one should be on top of the list.

 

• Next, figure out which of your credit cards carry the highest interest rate. This is the one that you should pay off first so you can avoid paying more money on interest instead of the actual money that you owe.

 

• Put in extra payments for those credit cards with the highest interest rate until you pay them off. In the meantime, pay minimum amount on your other credit cards.. Do this until you get rid of all your debt.

 

• If you’re being crushed by extremely high interest rate, you have the option to transfer your balance to an introductory 0% APR card.