How to Reduce Debt

Reducing you debt does not take magic, just a little know-how and some perseverance. Always start by paying off the debt with the highest interest rate.  Credit card companies make their money from those interest rate and so they make your minimum payments low so it will take you years and years to pay off your debt.

As soon as you start paying off more than that minimum payment, you will begin to see a difference. If possible, transfer balances on higher rate cards to those with lower rates.  But watch for those offers who give low rate for a short period of time and these will usually last just six months.  Canceling your old cards will stop the temptation for you to use them because you really only need two cards.  Those two cards can be left at home until the time you really must use it.

You can then create a timetable for your payments but you must then force yourself to stick with it.  A structured plan is what you need and if you need help with this, there are counselors at the nonprofit National Foundation for Credit Counseling.