by hisbabydoll

Created on: July 26, 2011   Last Updated: July 28, 2011

The best way to use credit cards is to pay off the entire balance each month when or before the balance is due. The most clever credit card users employ this method of payment, in tandem with reaping the benefits of credit card point or pay-back systems.  However, the majority of credit card users tend to carry a balance, and some even barely make minimum payments each month.

A good number of credit card users carry a balance for years, making payments but also making new purchases and incurring interest. Did you know if you pay only the minimum payment of your card each month, even without making new purchases, it could take you up to 25 years to pay off the balance? The big question is: how to get out of the credit card debt pit and pay off credit cards quickly? This article will look at a few different scenarios card users might use to accomplish this goal.

The basics:

*Stop using credit cards like money you have in your pocket. When trying to pay off debt, credit cards should only be used for emergencies. To accomplish this, adjust your budget to spend as little money as possible. Stop buying new belongings. Stop buying unnecessary fast food, coffee, or entertainment items.  Cook meals at home, and take bagged lunches to work or school. Stop paying to go out for entertainment, or spending a lot of money on entertaining at home.  Return to simple (cheap) pleasures like playing cards, board games, or simply talking with friends and family. Cancel unnecessary cable channels.  Decide if you need both home phones AND cell phones. You get the idea.

*Identify the cards charging the highest interest and pay them off first. If you have a lower interest card with credit space, try to shift balances from higher interest (such as store credit cards) to lower interest cards. It's easier to focus on paying off one large bill, than several smaller ones. Check to make sure any fees you may pay for shifting balances doesn't out weigh interest saved. Cancel higher interest cards once they are paid off. 

Utilize other assets: 

*Credit card interest is usually much higher than interest being earned on money saved in savings accounts. Instead of sitting on a savings while carrying a heavy debt load, use savings to pay off credit debt. The loss of saving security might be unnerving, but why make two percent interest on money saved while paying 19 percent interest on money owed? 

*Sell off unused or unnecessary

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