Directions to Reduce Credit Card Debt

Want to reduce your credit card debt and make progress towards a debt-free lifestyle? If so, you're in the right place. Here's a few steps to take to reduce your credit card debt to zero:

1. Sign-up for a 0% interest offer - If possible, try to move all your balances to a credit card with a zero percent interest rate for balance transfers. A zero percent interest balance transfer offer will allow you to reduce the amount of interest paid with each monthly payment. Naturally, reducing your interest rates from 15% or more to 0% is a great way to make significant progress on your credit card accounts.

2. Negotiate lower rates - Credit card companies are happy to reduce credit card interest rates for people who have been consistent with their payments. A quick phone call will allow you to ask a company to reduce your rates to keep your business. Do this for every balance that you cannot inexpensively transfer to a 0% interest credit card.

3. Pay the highest interest rate first - Your highest interest rate balance should be your first target. For all other balances, pay only the minimum payment. While you pay the minimum balance on your smallest interest balances, you're slowly paying off the balance that is growing the fastest because of interest. Once the highest interest balance is paid off, cycle to the second-highest interest rate until all debts are paid off.

4. Stop using your cards - If the temptation of credit card debt is simply too much, do not hesitate to stop using your credit cards as you work your way down to a zero balance. Unfortunately, too many people find it difficult to keep track of their payments when they use their credit cards to make purchases.