Join date: Mar 17, 2022


Handling Credit Card Debt

Editor’s Note: I thought about writing my own post about handling Credit Cards. It is difficult for me since my point of view is “rip them in half and throw them away”.. after you have payed them of course. Living without credit cards is difficult now days. If you don’t have one consider staying that way.. if you already have one, this advice may help you to get back on track with it. Remember that according to the best credit card strategy is to only use money that you already have! There are a few cases where a credit card may help you but using it to “build credit” is possibly the worst excuse to get one. Make sure to read well about credit history and methods on how to build one before signing up for a new credit card.

Post by: Credit Cards for Bad Credit

One of the most important things that you can do to assist in obtaining credit is to properly manage your current credit card debt. There are several strategies that will work if you have the discipline to see them through.

First, Gather the Information

No strategy can succeed if it is based on faulty or inadequate information. According to to determine which strategy makes the most sense to you, you need to know how much you owe on each of your debt obligations, how much your minimum payment is every month to service these debt obligations, and what your interest rate is for each of these debt obligations. For convenience we are going to use some terminology throughout this article to discuss the strategies.

Total Minimum Payments - This is the combined monthly minimum payments that you have to make in order to not be considered late by any of your debt holders. Extra Debt Payments Available - This is the amount of money you can afford to pay in debt servicing every month on top of your Total Minimum Payments. High-Cost Debt-This is the debt obligation with the highest interest rate. High-Payment Debt-This is the debt obligation with the highest monthly minimum payment. Lowest Number of Payments Remaining - This is the debt obligation that will be paid off the most rapidly by only paying the minimum payment plus the Extra Debt Payments Available.

Reduction in Overall Cost Strategy

For those who are only interested in paying the least amount possible to service their debt, this strategy is for you. Quite simply, you arrange your debt in order with the highest interest rate debt at the top and the lowest at the bottom. Every debt obligation receives the minimum payment for that month with all of the remaining, including any Extra Debt Payment Available used to pay the debt at the top of the list. Once that is paid off, the entire amount that was being paid to that card is added to the Extra Debt Payment Available and applied to the next card on the list.


Anything that you can do to reduce your debt will help in the long run. So, which ever strategy you employ, do everything you can to reduce your debt burden. According to economics help experts doing so will help your finances in the long term and improve your credit score, allowing you more opportunities in the future.

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