How Should I Pay My Credit Cards?

Credit card debt is something many people get into trouble with fairly early in life. You get your first student credit card and end up buying “stuff” merely because you the card. The next thing you know, the card is maxed out and you can only afford to pay the minimum, leaving the principle virtually untouched. In fact, if the balance is large enough, the minimum payment may not even cover the interest rate and you end up going over the limit.

Years later you still have that card and graduate from school, get your first job and what do you know, you get another pre-approved card in the mail with a lower interest rate. You figure you can transfer your balance and pay it off quicker. The only problem is that instead of leaving the first card in the drawer, you take it out and buy yourself something nice for the first time in ages.

Before you know, both cards are maxed. If you are lucky, the cycle stops here, but that is rarely the case. Another application shows up in the mail and the whole process starts all over again.

This is a common tale and one that debt management companies here over and over again. It could be due to excess spending or due to loss of employment. Regardless of how you got here, you are now stuck with multiple credit cards and have no idea how to get out from under this umbrella of debt. Unless you are going to file for a DRO or an IVA, you are going to have to tighten up the purse strings and figure a way to a pay these cards off more effectively.