Saving Money how to Cut your Debt to zero on your Credit Cards

Credit card debt, once amassed, can take forever to pay down if high interest payments are added to the principal debt each month. The surest and fastest way to reduce credit card debt down to zero is pay it down aggressively using a balance transfer card with a zero percent interest rate, utilizing a card that offers the longest possible introductory period.

Using a balance transfer card to clear credit card debt is an option primarily for those with excellent credit. Carrying debt does not necessarily mean ones credit score is negatively affected, unless payments have been made missed or paid late. Those who qualify for the best balance transfer cards on offer should consider terms such as 18 months at zero percent APR on some Citi Bank cards, 18 months with Discover and 12 months with Chase.

If a balance transfer card is utilized a fee will apply to the amount transferred, but this generally represents a good saving. Card holders should be advised though to ensure the new card is only used to clear down the debt, and not used for monthly spending. Continuing to spend on any credit cards will only hamper the effort put into paying off the debt and should thus be avoided at all costs.

Card holders whose debt has already impacted their credit rating will most likely find they are declined from the best available offers. In this case it is best to negotiate with current credit card companies to reduce the interest rate. If debt is spread across multiple cards it may be feasible to reduce the interest rate on one existing card and transfer other balances across to cut the total interest charged across the board.

To reduce credit card debt the balance with the highest interest rate should always be tackled first, regardless of the size of the balance. This method ensures the total balance reduces most effectively and fewer funds are paid in total towards the debt. If all interest rates are equal one should concentrate on the debt which carries the highest debt to credit ratio, in order to bolster one’s credit score and thus perhaps qualify for a preferential rate. Any credit card that carries a debt exceeding 30 percent of the credit limit should be paid down as quickly as possible.

It can take real effort to clear down credit card debt. Concentrate on using all spare funds to pay the debt whilst avoiding unnecessary spending in the interim. Once the debt is paid down then monthly disposable funds will increase, without the burden of making unnecessary interest payments to a credit card provider.