How to Lower Your Credit Card Debt

Credit card debt is becoming a huge economic problem. Millions of people are consistently spending more than they make and bridging the gap with credit cards. You, however, do not have to follow the crowd. Use these four simple steps to start lowering your credit card debt today.


If you have been using your credit cards to make ends meet, then it is time to do a budget. Find out what you are currently spending your money on and find ways to cut back. If you are consistently using credit cards to fill in the financial gap, then you need to a complete overhaul on your spending. The truth is, no matter how tight a budget is there are always places to reduce spending. Find where those places are and start cutting your spending until it aligns with your income. Only then will you be able to lower your credit card debt.

Lower Interest Rate

After you have made your budget, make a phone call to your creditors to ask them to lower your interest rate. Your interest rate is what determines how much of your payment actually goes to pay off debt. By lowering you interest rate you will be able to lower the amount of credit card debt you have faster. So do not be shy, pick up the phone and get that lower rate. Need a loan to help pay for college? Then the selection of low interest rates should be made. With low interest rates, the students will get help in repaying of the loan for further studies. The installments can be selected as per the requirement of the students.

Stop Charging

You cannot get out of a hole if you continue to dig, so stop digging a bigger financial hole. Put your credit cards in a block of ice or better yet, cut them up. By removing the temptation of having the credit card in your wallet, you will much less likely to charge up your card. If you ever feel tempted to use your card again, look at your budget and the debt you currently have. That may just be the reality check you need to put that credit card back on ice.


If you can, consolidate all of your credit cards down into one payment, do it. Typically, consolidation loans will lower both your interest rate and your payments making it easier to pay more toward your principle and lower your overall debt. Go to your bank or credit union and ask them to work with you. More than likely you will walk away with a lower payment and interest rate, as well as better control over your financial situation.

Pay More

Once you have made yourself a budget and lowered your interest rate and payments, it is time to begin lowering your debt. Start finding as much extra cash as you can to pay down the principle balance on your debt. Find a second job, write online, or even babysit to bring in extra income. Then go back to your budget and cut down your expenses even more. Once you have freed up as much money as possible, apply every extra penny you earn toward your credit card debt. If you follow these steps, you will find that your credit card debt, as well as your overall financial situation is in a much better state. So stay focused on your goal to lower your debt and you will succeed.