So you have found yourself in credit card debt with multiple credit cards. It is a struggle to make the minimum payments every month.

These are questions for you:

  • Do you money left over after paying all of the minimum payments on all your credit cards?
  • Is there enough money left over for essential such as food, water and gasoline?
If not, you may want to consider credit card debt counseling or a credit card debt consolidation loan. You will have to search articles online and follow links to find more information.

If at the end of the month, you have enough money for your essentials and for your credit card minimum payments, you can start digging yourself out of debt. If there is extra money at the end of the month use it to help pay off debt. If there is not, than cut back on something (like your cable TV) and use that money to help pay off the debt.

There are two philosophies on how to use the extra money to pay off debt. The first philosophy is to pay off the smallest debt first. The second philosophy is to pay off the highest interest rate debt first. Generally speaking, paying the credit card with the highest rate off first will be the shortest path to completely paying off all the debt, but it is delayed gratification. If you pay the smallest loan first, you will get the gratification of paying off a loan sooner, which may keep you on track to your goal of becoming credit card debt free.

In either case, the process is as follows

  1. Sort your loans by either the balance (smallest to largest) or interest rate (highest to lowest)
  2. Target either the smallest balance or highest interest rate card to get the extra money beyond the minimum payment.
  3. Pay the minimum balance on all of the other cards.
  4. With the remaining money, pay it toward the targeted card.
  5. When that card is paid off, use the extra money to target the next card on the list.

You could also take a hybrid approach, if you have a card, or cards, that have a small balance which can be paid off in three months, pay those cards off first from from smallest to largest balance. Then sort the cards interest rate. Then pay down those cards one by one, highest interest rate first.

So, it really does not matter which approach you use. You can get credit card debt relief if you use a little discipline and pay off one card at a time.