If you have a credit card or multiple cards that you would like to pay off then you may feel rather overwhelmed and confused about the best way to do it. It is a good start, deciding to pay them off and it is best to take a step by step approach to make it easier to manage and cope with. There is no need to rush things and stressed about it all as long as you are determined to get it paid off in the long run.
Stop Using the Cards
It is a good idea to start by stopping using your credit cards. Although they can be extremely convenient, if you keep accumulating debt then it will be much harder to pay them off. It is sensible to use them for online purchases, due to the protection they give you, but try to avoid it wherever you can. If you can avoid buying online altogether then you should not need to use them.
Sort Out the Cards
You will need to sort them out to figure out which to pay off first. Make sure that you are paying the minimum on each and set up a direct debit to do this if you have not done so already and then there will be no risk of missing a payment and getting extra charges. Find out how much each card is costing you with regards to interest and then you will know which one will be the best to pay off first. The one with the highest interest rate will normally be the one to go for unless there are any extra fees or charges with any of the others. Keep paying the minimum on everything, but try to pay extra off the most expensive.
See if you can Switch
It can be worth looking into switching the cards to cheaper ones. You might be able to do a balance transfer to another card with a lower interest rate and that would save you money. It will not be an option everyone can take up but it is worth looking in to. You may also consider taking out a different type of loan, perhaps a personal loan, which will be cheaper to pay off the cards. This is risky though for a few reasons. Firstly, you will have to make monthly repayments and these could be considerably higher than the minimum payments you are making currently. Also you will then have credit cards which have been paid off that you might be tempted to use and if you do, you could end up getting into even more debt than you were before.
Pay More than the Minimum
Once you have done all of this, you will be sensible to start paying more than the minimum amount of the most expensive card. Remember that each month you are charged interest on what you owe so if you can pay off a bit, then that interest will be lower and you will have more money to repay. So, it will get easier and easier to find the money to repay a bit more of the card and this can be really motivating. It can also be a good idea to see whether you can raise some more money so that you will be able to repay more as well.
Find Ways to Pay More
There are different things that you can try such as switching to buying cheaper items and buying less. Trying to find more work, sell things you own and do not need and perhaps earning some money from home. There are lots of opportunities but you need to identify the ones that will work best for you.