Keep your Credit Cards
A simple credit card payment strategy:
Conventional wisdom would have you cut up all of your
credit cards. However, you can reduce debt while keeping
your credits cards and doing the following:
1. Pay more than monthly minimum payment each month. In
lieu, pay your monthly minimum amount and your current
months finance charge each month. Did you know that just
paying the minimum amount is usually just 2 to 3% of your
current balance and any finance charges that you have
accrued. With the average person having a $10,000 credit
card balance with a 2% minimum payment, you would pay $200
toward decreasing that debt; however, the majority of that
payment would be applied towards interest, finance charges,
and then what is left over would be applied towards the
principal. Pay your minimum monthly payment, monthly finance
charge ,and any additional money that you can afforded to
put towards this debt each month. You’ll be surprised at how
fast your credit card balance decreases. 
2. Use only the credit cards the give you that
lowest rate. (Find the lowest Intertest Rates at
CardRatings.Com) Stop using all other credit
cards and don’t use them unless it is necessary absolutely
necessary. Additionally, conventional wisdom would tell you
to cancel your credit cards; however, cancelling credit
cards can have a negatively impact you credit score, so take
them out of your wallet and put them in a safe place. FYI,
Closing credit-card accounts that make up a large portion of
your overall credit limit can cause your "Percentage of
Credit Used" to skyrocket, which means your FICO/credit
score will suffer. Remember don’t use your credit cards
unless it is absolutely necessary.
3. Gather all of your recent credit card statements, write
down the balance, interest charge, finance charges on the
credit card expense template. Beginning with the credit card
with the lowest balance. Paying this balance off first will
help you stay motivated. See 8-reasons why debt reduction
programs fail.
4. On the debt with the highest balance pay the minimum
payment and the finance charge, until you get some you’re
your lower balance debts paid off. Once those debts are paid
off, readjust your strategy to start on the highest interest
rate debt and apply the money you were paying toward the
first debt towards the second debt in addition the minimum
payment and finance charges you were already applying.
Lastly, continue this process until all of your debts are
paid off. Depending on your current debt situation this may
take a few month or a few years, however try not to get
discouraged. Stay motivated and remember that one day you
will be debt-free.
Stop the Solicitations
If you are easily tempted or tired of coming home to a mailbox full of credit offers, one way to minimize the number of solicitation that you receive is to get your name added to the no solicitation or no-call list. In addition, by eliminating these offers you greatly reduce the chance of identity thieves establishing credit in your name. Lastly, you can reduce the amount of waste that these solicitations produce. Get started today by:
- Call 888.5OP.TOUT (888.567.8688) to have your name removed from the marketing lists that are sold by credit bureaus to potential lenders.
- Write to the Direct Marketing Association (DMA) to have your name removed from its direct mail and phone list. You will need to write a letter to each of the following:
- Mail Preference Service, P.O. Box 643, Carmel, NY 10512
- Telephone Preference Service, P.O. Box 1559, Carmel, NY 10512
- Or you can contact the DMA online to have your name removed from its direct mail, phone list, and e-mail databases:
- Lastly, Register with the National Do Not Call list or call 888.382.1222.
Lastly, registering with no-call or no-solicit list doe not in any way affect your ability to borrow money.