If you have multiple credit cards, you are probably quite aware that missing payments will increase the minimum monthly payment due. For many cardholders, this downward spiral consumes their finances until they are looking straight down the barrel of bankruptcy. Getting out of the credit card debt trap is much more doable if you go about it immediately, and believe me, it is possible.
The first thing you should do is make a decision for yourself. Come to a point realizing that you truly are in need to get out of this mess and will face it no matter how hard it may seem. Once you collected yourself and set your focus to being debt-free, commit to have the determination needed to get out of this problem.
The next thing you should do is to get rid of all of your open credit card accounts. This avoids all the temptation to use them. Using these cards means more debt. Destroying these cards is the best solution. If you try to put them away somewhere and your resolve falters you could get yourself back into trouble.
Here is the most critical part of our plan. The move which created this mess is developing the habit of paying the minimum amount only each month. It may be affordable up front but it actually will cost you more money in the long term
Try to pay at least twice the minimum payment due each month. Pay more if your budget allows it. This will chip away at the interest added each month and your bills will begin to get smaller as time progresses. Credit card companies make a lot of money from this interest and the other hidden fees so it is in their best interest, not yours, to get these reduced to a minimum. You will need to work at those balances by making larger payments every time. You may not notice a big difference at first but with several consecutive and on-time payments of twice the minimum or more, you will see your balance and interest due reduce to a manageable amount. Make sure only that don’t get a new card yet until they are fully paid and you discipline yourself to make good use of your next credit card.
It would seem painless to get into the habit of making only the minimum payments every time. Since you will mind of only a low amount, it can free up some cash flow for your other expenses. Regrettably, paying the minimum is not that easy and can be a very costly method of managing your finances in the long run. Even with just a low balance, the interests with your debts will likely to grow and will mostly take over a decade to repay. There is no better way, paying twice the minimum or more and adhering to this regime until you pay the whole balance, will be totally worth the effort.