by Tamara Brown

Created on: April 17, 2009

Having multiple credit cards to pay off can make you feel like a circus juggler. Numerous payments, different due dates and varying balances can make you feel like you have several balls in the air, and one is always in danger of dropping. Here is a basic plan to help you pay off your credit card debt without dropping the ball.

Stop the madness

If you are serious about paying off your credit card debt, the first step is to stop it from growing any larger. This starts with ceasing to make new charges. Next, do everything you can to make your minimum payments on time and to reduce any cards that are above your credit limit back down below your limit. This will stop any additional fees that are accumulating. One idea to make sure you never have a late payment is to schedule the minimum payments to be made through automatic withdrawal each month. You may also want to contact your credit card companies to ask them to reduce your interest rates in order to help you to make your minimum payments.

Select a focus card

Paying off multiple credit cards can be disheartening if you never see any progress being made. This is why it is important to focus on paying off one credit card at a time. You will pay the minimum on your other cards and throw everything you have at the selected card. There are competing ideas among the financial gurus of the day as to how to select a card to focus on. Some way that you should pay off the card with the highest interest rate first. This makes mathematical sense because you have the most to save by reducing and eliminating that balance. Others say to choose the card with the smallest balance. This makes emotional sense because the satisfaction that comes from paying off a credit card may help you to keep focused on your debt payoff plan. Choose the method that makes the most sense for you.

Snowball your debt

Once you have chosen a card to focus on, you will pay the minimum on all your other cards while putting the rest of your available money on the selected card. Find as many ways to add money to put on the card by either tightening your budget or bringing in some extra income. When that card is paid off, choose your next focus card. Then take all the money you were putting on the first card and add it to the minimum payment you were making on the second. Like a snowball, your payment amount will grow and grow.

Consolidate if necessary

To save money on interest, you can find a low interest credit card and transfer each of your balances onto the card. Beware of hidden fees, however. Do not do this if there is a balance transfer fee, or a higher balance transfer APR . Also, if the low APR is an introductory rate, then you will want to be sure that you can pay it off before the low rate expires. Resist hopping from card to card to get a lower rate because every additional credit application you submit can bring down your credit score.

It may not happen overnight, but following this simple plan will help you to reduce and eventually eliminate your debt on multiple credit cards. Once they are paid off, don't start using them again, but don't cancel them either as canceling credit cards can bring down your overall credit score.

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