A Beginners Guide To

Different Ways to Paying Credit Card Debt

If ever you are wondering on how you could pay off debt fast, you should be aware that you are not the only one who has this kind of problem. There are in fact 1 in 3 Americans who have a balance with their credit cards from month to month. If you are one of it and you wish to reduce your balance, below are some effective things that will be able to help you on how to quickly pay credit card debts. So how much credit card debt is too much?

Target on One Debt at a Time

Do you have a balance with more than one card? You should make sure that you pay at least a minimum for every card. Then, you should focus in paying the overall balance for one card at a time. You can then choose on which card you target in two different ways.

You should check the interest rate of the statement first so you could see on which credit card charges high interest rate and then put your concentration to paying that debt first.

You then should consider paying the card with the smallest balance and take the money that you were paying for such debt and then use this in paying down the next smallest balance.

Pay more than the Minimum

It is best to also consider checking your credit card statement. When you will pay the minimum balance on your credit card, this will take a lot longer to pay off the bills. If you pay more than the minimum, this will benefit you where you will pay less on the overall interest. The card company actually is required to put this on your statement for you to see how this will apply to your bill.


Consolidating debts actually helps in combining several balances with high interests to just one with a much lower rate for you to pay the debt faster without having to increase the payment amounts. Below is a way with how you could consolidate debt.

By taking advantage on low balance transfer rates to move the debt off high interest cards. Also take note that balance transfer fees are usually about 3 – 5% but the savings that you get from lower interest rates usually are greater compared to the transfer fee. You should also factor this when you are considering such option.

When you consider consolidating, take note that it’s essential that you control on your spending so you are able to avoid tracking on your new debt on top of the debt which you just consolidated.

Reprioritize on your Budget

You can actually start through categorizing monthly spending such as groceries, transportation, entertainment and housing. The credit card statement is a very helpful tool and a lot of issuers in fact categorize your spending.

The next thing is to look on areas to where you could cut back. You should then get the money you saved and apply this to paying up your debt.