Reduce Your Credit Card Payments In 5 Easy Steps

With a little effort you can reduce credit card payments as long as you have the discipline and patience to do so. Here are a few easy steps you can follow to bring down your payments.

Make a List

Start by making a list of all your credit cards. Write down the full balance, the monthly minimums, and the interest rates on all of them. Now add all of the monthly payments up. This should serve as your current budget for the credit cards. If you are in the financial position to do so, add 3% to the total payment amount and disperse it through all the cards. As you make higher payments for a few months, the monthly minimums should go down. The minimum payments are derived from taking a percentage of your overall balance. Since you are making higher payments, the over all balances will decrease as will your monthly payments.

Stick to the Budget

Even if you’ve paid off one card, keep that same figure from your list as you make payments on the other cards. Just move the money you were using to pay on the other card to the cards you still have a balance on. Continue to do with until you’ve paid off more of your debt.

Ask for Interest Rate Reductions

You can, at any point in time, contact the credit card company and request a reduction in your interest rate. As long as you’ve made payments on the account faithfully there is a good chance the credit card company will work with you. If they tell you the account is not eligible, then ask them why. Often it will be something simple like you’ve had a reduction recently, or there was a missed payment on the account. If they tell you that you are eligible for a rate reduction in 6 months, mark this date on your calendar and try again.

Balance Transfers

Take advantage of balance transfer specials and introductory rates if they offer a lower interest rate than your current cards. Be sure you read the terms carefully, and make sure you are able to pay the majority, if not all, of the transferred amount during the introductory period. This is a great solution to paying off debt. You want to be sure you aren’t doing this often and accumulating more cards that you will be tempted to use later.

Freeze Your Cards

Stop using your cards! Period! The best way to do this is to stick the cards in a freezer bag and fill it with water. Now stick the bag in your freezer. Now you have cards for emergency purposes, but it has to be a true emergency for you to want to thaw them out. You can cut the cards up to, but this isn’t as much fun! And if you cut up the cards you won’t have them if you have a real emergency and need them. There is no point in trying to reduce your debt if you are going to continue to use the cards.

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