Reduce your interest rate:
Believe it or not, a simple call to your credit card company asking them to reduce your interest rate may be all that is needed to save you hundreds of dollars every month. Most companies will reduce your rate just because you ask them. What if they refuse to lower your interest rate? Look for a lower, or interest free, transfer offer and close your account with them.
Which Balance to Transfer:
If you have a balance with multiple credit card companies, knowing which balances to transfer is critically important. To create an effective debt reduction program choose the card with the largest balance that you can fully pay off during the new card's promotional period. In other words, let's say you find an offer where you can transfer up to $2400 interest free for a year. Now let's you have 3 cards that have a balance of $900, $2000 and $4500. You know that you can pay $200 per month. I would recommend transferring the card with the balance of $2000 as that will allow you to pay off the entire balance on that card within the 12 month promotional period. After 10 months you will have that card completely paid off.
A Snowball's Chance:
The most important technique in paying off your credit card debt is called the "snowball" method. In the same way a snowball rolling downhill gets bigger and bigger, this method will help you reduce your debt faster and faster.
Going back to the previous example, you have now paid off your credit card bill that has a $2000 balance. Now look at the remaining two accounts. Let's say your minimum on the $900 bill is $50 per month and the minimum on the $4500 bill is $150. Keep paying the minimum on the $4500 balance and pay the $50 minimum PLUS the $200 per month you were paying on the $2000 balance account that you have now paid off in the previous step. This will allow you to pay this bill off even faster.
When you have paid off the $900 balance in a few months go after the $4500 balance by adding your minimum payment of $150 PLUS the $250 per month you have been putting towards the account with the $900 balance.
Combining these methods should have you out of credit card debt in no time at all and unlike many methods, keep your credit rating high.
Frank V is a noted expert in eliminating debt having eliminated over $100,000 of personal debt and interest charges. If you are looking for even more information on debt elimination visit http://DebtBeGoneToday.com for thousands of
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