Tip #1 - Never Close a Credit Card Line

Many times we get frustrated about our spending habits and opt to close a credit line in hopes that we will then be able to pay off our debt. However, closing a credit card line will negatively impact your credit score because you are reducing the amount of available credit you have available when compared to your total debt.

Tip #2 - Snowball Effect

It can be stressful and frustrating when you have more than one credit card maxed out and see no light of the day when you will be able to pay off the debt. However, paying off your credit cards can be accomplished by implementing the "Snowball Effect". This can be accomplished by focusing your efforts on one credit card at a time. It is recommended that you determine what your APR (annual percentage rate) is on each credit card and begin with the credit card that has the highest balance and the highest APR. The APR is disclosed towards the bottom of your monthly statements.

You will then make minimum payments to all your credit cards except the credit card with the highest balance and highest APR. You will focus all your efforts on this sole credit card. If will apply any extra money such as spare money laying around, an unexpected bonus, or tax return money to this credit card. The idea is that you will finish paying one credit card off at a time. This will give you a sense of satisfaction, hope, and accomplishment.

Tip #3 - Zero Percent Interest

Many times credit card companies qualify you for zero percent interest on existing credit cards. You can qualify for these promotions if you are in good standing with your credit card company. Taking advantage of this will prevent your credit card balance from growing due to interest and as a result you will finish paying off your credit cards faster.

Tipe #4 - Consolidating Debt

Another alternative is to apply for a personal line of credit with your local credit union. Credit unions are known to have more favorable interest rates as opposed to large banks. A personal line of credit's interest rates can be 3 times less than the APR on your credit cards. You can pay off all of your credit cards with the funds you are borrowing from your personal line of credit. This means that you still owe the same balance as before, however, the interest rate being applied to your debt on your personal line of credit is much lower than your credit cards. This will allow for your debt to be paid off much quicker! To find the closest credit union near you click here.