How can I pay off my credit card debt faster?
Depending on your situation, a Debt Management Program may be your best option. With a Debt Management Program there are many benefits, such as lower interest rates, accounts that are past due could re-age (brought current) and late fees would end. But most importantly, you would pay off these debts in 5 years or less. If going on a Debt Management Program is not an option for you, or not something you are looking to do, then here are some strategies that you may want to consider.
Target one debt at a time. Make sure you are paying at least the minimum payments on all your cards but then pay extra to one of your cards. Which one? You can compare interest rates and pay extra on the card with the highest balance OR pay off the lowest balance card. Once you have a card paid off apply the payment (and extra funds) to the next card.
Pay More than the minimum. Pay a little extra on every card. Every dollar over the minimum goes towards the balance, not interest. The smaller the balance, the less interest that occurs.
Apply any extra funds to your debt. Any extra income you get, put towards your debt.
Analyze where you have been spending your money the most and cut back. Then apply the money that you have saved towards your debts.
Call Creditors directly to see if they have any internal programs that can help you. If paying extra towards your credit cards is not permitted based on your budget and income and you are not looking to work with a debt management company, call the creditors and see if they can help.
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