A Few Practical Tips to Pay Off Those Credit Cards

The economy is in bad shape right now. Many Americans are suffering financially. It can be hard to get out of debt. Credit card debt is especially hard to get out of. Here are a few practical tips to pay off your credit cards:

• Pay for every purchase in cash-you can pay off your credit cards faster if you do not charge them anymore. Paying in cash helps you avoid interest fees and allows you to better budget your money. When you use cash, you are seeing exactly how much you are spending so you are thriftier with your money.

• Pay more than your minimum payment-if you just pay your minimum payment every month then you will never pay off your credit cards. There are interest frees and finance fees every month so half or more of your minimum payment goes towards paying for those fees. You should pay as much as you can to each card. You should start with the card with the lowest credit limit. If you can pay it off then you will feel better and your credit rating will improve.

• Look at your finance statements-make a spreadsheet of your credit limits, current balances, finance charges, interest rates, and minimum payments. You should examine which cards cost you the most money per month and make an extra payment to them in the middle of the billing cycle. This will lower your outstanding balance and can help lower your monthly minimum payment.

• Try to re-negotiate your interest rates-contact your credit card companies and try to get lower interest rates. This can help you save money and pay off your credit cards faster. If you cannot get a better rate, try applying for a rate credit card with a lower interest rate and transferring some of the balances from your credit cards with the highest interest rates.

• Take on a holiday job or a weekend part time job-try earning extra money to put towards paying off your credit card. You could even have a yard sale or sell some of your old items on eBay to help make some money to pay off your credit card debts.

Paying off your credit cards will help you have a better credit rating. It is important to have a good credit rating because it helps you purchase things like cars and homes when you can afford them.

A good credit rating gives you better interest rates on loans and credit cards and can be very helpful. Hopefully, these tips will help you pay off your credit cards faster.