5 Ways To Shrink Your Credit Card Debt

Personal Finance

5 Ways To Shrink Your

Credit Card Debt

1. Send in your payment as soon as you get the bill, even if it’s not due for weeks. That will lower your average daily balance-and decrease the interest you have to pay next month.
   
   
2. When you pay off one card, don’t spend the money you’re saving, apply it to another bill.
   
   
3. If your bill says you can skip a payment, pay it anyway. If you don’t, you’ll just end up with a higher balance next month.
   
   
4. Use some savings to pay off credit card balances. If you’re paying 14 percent on a card balance, but earning only 3 percent on savings, this step will save you 11 percent of your balance every month.
   
   
5. Switch to cards with lower interest rates. The average consumer can save $100 in the first year just by doing this.