1. Get all your credit cards, together with statements
If you are serious about credit card debt, the first thing you need to do is to gather all their credit card statements together and begin to create "debt" table.
What's next move on this table? You want to point out how much you owe for each credit card interest rates and whether this figure is an introductory teaser rate or long-term rates. If any of your credit cards at present rates at the time of opening lines, make note of when that rate will be exhausted and that it will go up when she makes.
2. Find out how much you can afford each month
Once you know exactly where is your duty, it is time to create your game plan. This is very important if you want to eliminate credit card debt in the most rapid and effective way.
First, look at how much you can afford to put on its debt every month. Put all your monthly expenses (not including the minimum monthly payment by credit card, you should do). Take all their other costs (including rent / mortgage, car payments, insurance, gas, food, utilities, telephone, etc.) and add them.
Once you have summed up the monthly cost, deduct them from your income and see how much you have left. Take as much of that amount as you possibly can and put it to your credit card debt elimination plan.
For example, suppose that you have $ 400 a month left after all your monthly expenses are paid. Take this $ 350 ($ 50 left for emergencies, etc.) and put that to repay your debts, credit card.
3. Speaking for the minimum monthly payment
The next step towards the elimination of credit card debt is a summation of all minimum monthly payments for all your credit cards. For example, if you have three credit cards, all with a minimum monthly payment of $ 75, the total minimum monthly payments will be $ 225.
If your credit card distribution were $ 350 each month, as we outlined above scenario, we need to be in the form of window so far. However, if you have minimum monthly payments were $ 400, and you could afford only $ 350, then you have serious problems and you need to start tripping costs. This may mean switching off your cable before you made or eliminate credit card debt above your Starbucks works, but it will be worth in the long run.
4. The plan of attack
Now that you know exactly how much debt you have and how much money you can afford to repay debt that each month, it is time to form your plan of attack.
First, take a total of your minimum monthly payments and deduct it from what you've highlighted by credit card debt. So if you have a minimum monthly payments of $ 225 and credit card debt provision of $ 350, your balance will be $ 125. Take that $ 125 and apply to credit cards with high interest rate.
Once the credit card with high interest rates paid off, you're going to borrow money you pay to achieve this card each month (in which case it would be $ 125 plus $ 75 minimum monthly payments) and pay that $ 200 at stake, which now has high interest rates, in addition to the minimum monthly payment. Keep repeating the process until you reach the total credit card debt.
5. The fruits of your labor
After all your credit cards paid off, take half of what you paid for your debt and put it to a savings account. It will help you avoid the need to rack credit card debt activities in the future.
What are you going to do with the other half? Accept that half and apply it to the things you did while without a credit card debt. In the end, when credit card debt will be achieved, you deserve to treat themselves.