The first and foremost step that you must take to reduce your credit card debts is to stop using the credit card. It will, of course, lead to a handicap in terms of possessing a payment alternative. However, you must realize that the greater the debt, longer will be the time you would take to clear it. Although an only-cash' option can be a frightening thought, you must take this step to ensure that you do not accumulate debts further.
If you have multiple credit cards, design a systematic plan of repayment. Prepare a table that includes the owed amount, interest rate, minimum payment and the due date for each of your credit cards. The information will help you prioritize your payments. Once you have your payment plan ready, develop strategies to reduce your debts methodically. The most important strategy is to repay the amount owed on cards with high interest rates. High interest can eat into your monthly payments by way of finance charges. By clearing off the debts on these cards, you can free up your funds for payment on other cards. Another alternative to this is paying off the debts on cards with the least balances. In doing so, you have additional funds to pay... [continues]
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(2007, 08). Credit Card Debt. StudyMode.com. Retrieved 08, 2007, from http://www.studymode.com/essays/Credit-Card-Debt-119435.html
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"Credit Card Debt." StudyMode.com. 08, 2007. Accessed 08, 2007. http://www.studymode.com/essays/Credit-Card-Debt-119435.html.