One of the best ways to pay down your credit card debt as quickly as possible is to harness your financial resources, free up financial leaks and start directing all that cash to paying off your credit cards. Although this sounds simple enough, an action plan can help you stay focused on the most important aspects of this process.
Here's a 5-step action plan to pay down your credit cards:
- Understand that this will take time and dedication: You need to apply your focus and attention to paying down your debt and continue this process for some time before all your debt is paid off.
- Stop using your credit cards: Use cash or a debit card only to pay all your bills and expenses.
- Make a list of all your cards and details: Include the interest rates, the amount of debt and the minimum payments required for each.
- Target one high interest balance with most of your cash and pay only the minimum balances on lower interest cards: This is called the avalanche method.
- Update your budget and stay diligent to erase unnecessary expenses: If you keep your budget up to date and you're aggressive with sticking to your budget, you'll see big improvements in no time. The success of this plan is ultimately all about discipline.
Perhaps you like this idea, but realistically, you think that it's never going to work because you can't even afford to make the minimum payments on your cards. If that sounds like your situation, it could be vital for you to investigate other types of debt resolution options, like bankruptcy. If you're the right candidate for bankruptcy, it could be the fastest way for you to pay off your debt as quickly as possible.