The Best Credit Card Has a Zero Balance: How to Pay Them Off

You understand that buying on credit costs a lot more than paying cash.

You have lowered your interest rates as low as they can go. Now it's time to eliminate your credit card debt. Here's how you do it.

	1.	First, set financial goals to determine what you want to accomplish.
	2.	Next, make a list of all of your credit card debts, including the interest you pay on each card.
	3.	Keep one or two credit cards for emergency use, such as renting a car or a hotel room. Cut up all the rest.
	4.	Pay with cash or debit card for everything you need. You can't reduce the balances on your credit cards if you keep spending money on them each month.
	5.	Make a personal budget to determine how much you can afford to devote to paying down your credit cards each month.
	6.	Take the funds available to pay down your credit cards, and ensure that the minimum payment is made on each card each month.
	7.	If possible, transfer balances from your highest interest rate cards to your lowest interest rate cards to reduce the interest you pay.
	8.	Pay off your highest interest rate cards first. This is a key point. Many people make the mistake of paying off the smallest balance first, so that they can eliminate one of their cards. Wrong! It makes no sense to borrow at 25% so you can pay off an 17% card! Pay off high interest rate cards first.
	9.	Look for other sources of cash. Read our report on 6 ways to beat debt.

Your goal will be to pay off all of your credit cards as fast as possible, while still paying your rent, of course.

But what if you are so far in the hole that it will take many years to pay them off?