[P122]Pay Off Your Credit Cards

Credit card debt - it seems we are drowning in it. Each year, Americans rack up more and more credit card debt and it becomes harder and harder to pay them off it seems. Many of us have multiple credit cards with different balances meaning that each month we have to go through and make sure each one gets paid - and all too often we pay and pay without seeing as much as a dent being made in the balance thanks to interest charges!

If you are trapped under a mountain of credit card debt, there is hope. We're going to show you how you can manage that debt and get it paid off in record time by following a very simple principal. In fact, you won't even need to spend $1 more than you already are paying on the cards - we are just going to allocate that dollar a little differently. Of course, if you want to allocate a few more dollars towards the cards it will make the whole process go a bit smoother.

Let's say that you have four credit cards, each with different balances and interest rates. First, find out which one has the highest interest rate - that is going to be the one we tackle first. Why? Because it is the interest charges that trap many consumers. We all know that credit card companies like to raise rates at any time for any reason. Five minutes late with a payment and they raise the rate to something astronomical! Well, we are going to beat them at their own this time around.

Now that you know which card carries the highest interest we are going to tackle it to get it paid off the fastest. On your other three cards, you are just going to make the minimum payment required. Any extra money you have from your credit card payment budget (you do have a budget, right?) we are going to use to put towards that card. We are not even going to think about the other cards other than making sure we get that minimum payment in on time. We are going to concentrate the majority of our time, money and effort on the one with the highest interest.
All the excess funds you have for your credit cards, after you've paid the minimum on the other three, are going to go to the one with the highest interest. Make sure you are paying the minimum on it plus some - if you have to give up lunch for a while, do it!

You are going to continue doing this every month - paying the minimum on the other three, and allocating all your extra funds towards the one with the highest interest. What are we doing? We're decreasing the balance on the card with the highest interest. Every month your interest charges for it will continue to go down as you pay the balance off - and each month it will go down by a bigger amount even if you continue sending in the same payment!

Now are you ready to really see your balances drop? When you get the first card paid off, take all the money you were paying towards it PLUS the money you were paying towards the card with the 2nd highest interest - now you are sending all that money in every month. You've doubled up! The balance will drop like a rock!

It gets even better! Wait until you've paid off two cards and now are taking the money from the 1st card you paid off, the 2nd card you paid off and the money from the 3rd card you are paying on - faster than you can say "Charge it!" that balance will drop.

This technique works because as we pay off a card, instead of pocketing that money or spending it on something else we are using it to increase our payments on another - the domino effect kicks in as we pay off more cards until we are paying off the balances quicker and quicker. Before you know it - you could be debt free!

Now, the important thing to remember here is this: You can't be running out and using these cards every month or this won't work! If you have to have one card for travel, business or expenditures then make sure you pick one card and stick to one card. Hide and lock up your other cards to resist the temptation.

Give this trick a try, and you will find in just a few short months you will be seeing the light at the end of the credit card tunnel!