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Paying back credit card debt can be particularly difficult if there is no proper financial plan in place. A sound repayment plan should be thought out in order to successfully repay the outstanding balance. Here are some tips to clear off credit card debts in a more manageable and easy way.

Multiple Cards

If there are multiple cards which have outstanding balance, sorting out the cards and writing down the balance due on each card, is a good first step. Cancelling unwanted cards with low balances that can be cleared off immediately may be a good idea. Credit scores should to be considered before closing cards, closing inadvertently can damage the credit scores if multiple cards are cancelled at the same time. Paying off the debt one by one can be possible, but interest rates should allow for this arrangement. Talking to the credit card companies to make this happen might be a good idea.

High interest cards

For multiple card owners, clearing off the balance that has a highest interest rate is a good idea. That way the outstanding balance does not grow with high interest rate. Paying off the outstanding balance, even if it is the lowest, can benefit in the long run, since the interest rates will be instantly reduce.

Minimum Balance

If the outstanding balance is unable to be paid, paying the minimum amount due is a good idea. This way, the late payment fee and other unwanted charges can be reduced. First step towards managing these bills is to write down every card`s and the minimum amount due, outstanding balance and how much should be paid every month in order to get out of the debt. This will help in distributing the money equally to all cards and reducing the debt eventually.

Routing money for cards

Planning for payment is the first step in clearing debts. Finding the money to pay off the debt should then be easy. Writing down the monthly budget will give a fair idea about the money that is being spent on the essentials and the money that can be saved. There will be some expenditure that can be controlled and the money rerouted on to repaying the debts.

Balance transfer

Another option to explore is to choose a balance transfer card, and check if balance from multiple cards can be transferred onto one card. One advantage of this arrangement is that the outstanding balance will have zero interest rate for at least a year, during which the balance can be paid off without the amount being increased every month. Balance transfer arrangement is best if the card has longer duration of zero interest rate, and costs very less for the whole transaction.

A strict financial discipline is required in order to pay debts. Unnecessary spending can complicate the situation and lead into deeper debts. Planning a budget including monthly bills and extra money for the debts, and sticking to it, is the safe way out of debts.