top of page

Managing Credit Card Debt

Credit Cards are not bad to have. They are not evil. What gets credit card owners in trouble is NOT KNOWING HOW TO USE THEM. Learning how to manage your debt and how to use debt leveraging can produce favorable outcomes. You have to know the difference between good and bad debt, self discipline, and of course, strategy. But we live and we learn. Most of us were not taught how to use credit cards before we get them.

You Need A Plan

So, you have bad credit card debt, making minimum payments, with over 33% usage on your cards. What do you do? You need a plan. Making a strategic plan will create the awareness for you to follow through. The best solution would depend on your circumstances. But no matter what your circumstances, there’s a way.

1. Use the debt avalanche method.

Debt avalanche method involves prioritizing paying off credit cards with the highest interest rate. Tweak your budget to free up dollars. Keep making minimum payments on all your cards, but allocate the remaining budget toward the one with the highest interest rate. The goal is to save on interest.

2. Consider the debt snowball method.

Debt snowball method, you pay off your smallest debts first and then move on to bigger ones. Pay the most you can toward the card with the least debt, and the minimum balance on the others. Once one card is paid off, move on to the card with the next lowest balance. The goal here is quantity. Pay off the most cards

3. Pay off credit cards in full with a loan.

Personal Loans may carry lower interest rates than credit cards. Using a personal loan to pay off credit cards could be a good way to consolidate your debt, save you money on interest rates, and get you out of debt sooner. Here's the conundrum. You have to show you have the cashflow and you may have to meet a credit score stipulation.

4. Use a credit card balance transfer.

* BALANCE TRANSFER * This is a fav of mine Some credit cards have promotional, 0% interest rates for debts that you transfer to the card. While you may have to pay a balance transfer fee, you’ll be able to pay down the transferred balances faster, as they won’t accrue interest during the promotional period.

Get on a debt management plan. counseling organizations may be able to help you set up a debt management plan (DMP). The counselor may be able to negotiate lower interest rates and monthly payments on your behalf and get you on a plan to pay off your debts within three to five years. Make sure to know all the rules that come with debt management plans: In some cases, you may need to close and stop using all your credit cards while on a DMP.

12 views0 comments

Recent Posts

See All


Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page