Make More than Your Minimum Payments
Credit card companies actually love when you pay just enough to get by. At that rate, you will be paying just interest and fees for the foreseeable future. Look at your most recent credit card statement to get a ballpark figure on what your monthly interest is and then budget as much of a payment as you can afford.
Pay Off Your Largest Debt First
Once you pay off your first debt, you will be fired up to do it again and again. Go for the gusto right out of the park. Doing this will improve your credit score since debt utilization is a huge factor. The lower your utilization, the better! (What’s debt utilization you ask? Debt utilization is how much credit line /available credit they have provided you, say a $10,000 credit limit, verses how much you have spent; say your balance is $5,000. In this case you have 50% credit utilization. Try to keep credit utilization at or below 30%)
Talk to Your Creditors
Explain your financial situation and ask if there is anything they can do to help. Some will waive current late fee balances to help you get caught up. Some will do whatever is necessary to keep you as a customer.
Budget Your Money
Setting a budget for your credit card spending is a must for paying off your debts. You also need to treat your payments as a fixed expense. Pay the same amount for credit card payments each month, instead of simply paying different amounts all the time. Many people slip into debt by being inconsistent on their payments.
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