Eliminating debt is a slow and lengthy process.
It only takes a few purchases to reach your credit limit but it takes many years to pay everything off.
There is no secret formula to follow to be free of debt.
Paying credit card debt takes a lot of discipline and patience which are important values in understanding your family's goal of minimizing credit card debt.
Here are some tips to help you slowly eliminate credit card debt.
First, make sure your credit card bills are paid on time.
Make a list of all your credit cards and their respective due dates.
Include the interest rates and minimum payments on your list.
It would be a lot more convenient for you if you coordinated with the banks and have your all your due dates to fall at almost the same time, and if necessary, request to have your due dates changed at least 2 to 3 days after you get your salary paid out so you have sufficient time to make the payments on time.
If the banks won't move your due dates, make sure to keep track of the checks you are issuing and make sure you have enough funds to cover it.
Divide the amounts of your bills into two payments every month so you won't have to pay out a huge amount in one time.
You can also pay your bills through online banking.
It would take about three days for the payments to go through.
It is important to make your payments on time; each day exceeding the due date will mean additional interest charges.
Second, look at all the cards you have and pick the ones that have better interest rates and fees.
Try to get rid of the cards that will only cost you more and with the rewards that you won't really be using.
If you won't be using the air miles and other perks that accompany one card, just transfer the credit balances on that card to your other card if you have not exceeded your credit limit yet.
This will make it easier for you to complete the payments faster and more conveniently.
There is no better reward than having a debt-free lifestyle.
Centralize your accounts so it is also easier for you to keep track of your purchases and payments and in the long run eliminate credit card debt.
Third, is to look at the card bills again and choose which one you want to pay off first.
Pick the credit card that has the highest interest rate and other unnecessary fees.
Without having to transfer balances to other cards, or restructuring payment schemes, you can just pay at least twice the amount of the minimum charges on the card that you want to get rid of first.
If there are two cards you want to get rid of first, pick the one that has an annual fee that is due soonest.
And then just pay the minimum on the other card, or cards that you want to keep till you have paid off the card you want to get rid of.
If paying off twice the amount due seems to be too much, then consider putting aside some savings to pay off credit card statements, so it makes it easier to eliminate credit card debt.
Instead of making unnecessary expenses, save it and use it to pay off credit card statements, it will give you more financial freedom in the future.
When you're done paying for one, pay off the next and have the ones paid off canceled.
Just keep one or two cards for emergency purposes only - not luxuries.