7 steps you can use to reduce credit card debt

November 20th, 2020
7 steps you can use to reduce credit card debt

7 steps you can use to reduce credit card debt

1) Make the minimum monthly payment on each card you owe.

2) Put any extra funds remaining on the card with the highest interest rate. Once that card has been paid off, repeat this with the next highest rate credit card.

3) Contact each credit card company and try to negotiate a lower interest rate if possible.

4) Watch for offers from banks and lending institutions offering low interest rates if you transfer your existing debt to them. Make sure to read all fine print to know when the low teaser interest rate expires and what the new rate will be. Keep an eye out for more transfer offers with the goal of repeating this process.

5) As mentioned, low teaser interest rates will likely last only for a limited time before they increase to a much higher rate. Do your best to pay as much debt off as you can while the interest rate is low.

6) Set up automatic payments at your financial institution for a few business days before each card is due.

7) Once you’ve paid off a card, cancel it. You probably don’t need more than two cards at a time. Keep the lowest interest rate cards.

Digging yourself out of credit card debt can be difficult for anyone. Call today for a free consultation to determine if there is a better option for you based on the amount you owe.