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Steps on How to Pay off Credit Card Debt and How to Use it Properly

Updated on October 15, 2013

There are easy steps on how to pay off credit card debt and how to properly use it thereafter

.Credit cards are just like what the name implies, “credit card” or “card for credit“, it is still money which you owe yourself and the issuer of the credit cards and needed to be paid. Sometimes we cant equate credit card with money, that’s why we go on spending spree, only to be shocked later on regarding the billings and that you have accumulated big debts through it. I was like that for the past ten years prior to giving up many credit cards. I learned to use just one now and I only used it for emergency purposes. How did I pay my credit cards? We need determination and patience.

Paying off Credit Card Debt

If you find yourself making interest payments every month on your credit cards follow these steps on how to pay off credit card debt

1. If you have a computer, utilize spreadsheet or excel in monitoring your credits due to card, expenses, and earnings in a month. Add your monthly expenses and subtract them from your monthly income. This is your disposable income after expenses, the amount you have each month to use for other expenses. If it is negative it is time for you to cut back on expenses or else find another job to supplement your income, so that your disposable income becomes bigger.

2. Learn how not to use your credit cards, and pay cash every time you need to buy something.

3. Take a look intently on your credit card debt. If you have more than one credit card, examine the one who has low interest rate, and if you want you transfer your balances to the other one which has the lower rates.

4. Start to pay your credit card debt using your disposable income, pay it religiously and try to pay not only the minimum amount, but pay the maximum amount you can afford. During the times that you are paying off your other credit cards (if you cant transfer the account) try to live frugally and stick to your budget.

5. If you are able to transfer other credit cards to only one card, then it is easier for you now to monitor your expenses and payment of the remaining debt will be easier.

6. Start to pay the debt in your remaining card and don’t miss any payment as this will increase the amount to be paid the next time you need to pay it. Remember your credit has gone up because you transferred some debts in your sole credit card.

Now you have only one card, it is easier to manage it and you can have a sigh of relief. I know you will.

How to use a credit card wisely

Now, after settling things with your credit cards, it is time for you to properly used it without worrying and becoming a cool credit card user. The most important things for you is to completely pay off the bill every month. Think of the credit card as using cash that is reserved each month for the items charged, then it means there is no interest charged.

There you go, just follow the steps on how to pay off credit card debt and how to use the card thereafter and you will never be a happy spender.

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    • dohn121 profile image

      dohn121 7 years ago from Hudson Valley, New York

      Great advice, Maita. I learned that canceling your credit cards can actually lower your credit score! I don't think anyone in this planet needs more than two credit cards at most. Currently, I only have one--a Capital One card--and I'm working to get an American Express. Aside from that, I don't want any other credit cards, especially department store credit cards that have high-interest rates. Thanks for the great info. I could have used this hub a few years ago :D

    • profile image

      HealthTip 7 years ago

      Great advice my friend, I must clear mine after Xmas !

    • myownworld profile image

      myownworld 7 years ago from uk

      Ah...my versatile friend....who can write better than you about anything and everything with equal command! another great hub pretty Maita! (mind if I call u that?)

      btw. I never look at the bill...but just past it on to hubby! saves the trouble! ;) hugs x

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      hi Dohn, hmmm, you are right there, we need to have minimal number of credit cards, at leats you have found the solutions to the problem already, sometimes credit cards are making us as servant to it, instead of the other way around

      THanks for reading this hub!

      Maita

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      Hi HT, thanks for reading this hub, and I hope you will pay yours soonest, have a good day, Maita

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      hi MOW, you are lucky indeed, hmmm, you just pass it on, thanks my friend for reading this hub, Maita

    • carolina muscle profile image

      carolina muscle 7 years ago from Charlotte, North Carolina

      Yep... those little cards can get ya into mucho trouble!!!

    • Truth From Truth profile image

      Truth From Truth 7 years ago from Michigan

      great points. its best just to keep one card for travel.

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      hi carolina muscle, thnaks for dropping by, how are you?

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      hi truth, yes only one card is better,but if you can manage two, why not? thanks for reading this one, Maita

    • maudine_05 profile image

      maudine_05 7 years ago from United States

      Hi Myth, I'm an impulsive buyer so credit card is not really good for me.Nice hub though.

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      hi maudine, yes you are correct, if you are an impulse buyer, you should take control my friend, hmmm what can I say for women, we like shopping LOL< thanks my friend for reading this hub. Maita

    • profile image

      socit2009 7 years ago

      Nice

      Very great efforts & information

      Thanks

      Links :- http://www.asktoyota.info

    • wolfpack5 profile image

      wolfpack5 7 years ago from Alberta Canada

      Hi pdh, very nice hub and great info thanks :)

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      thanks socit2009 for reading this hub.

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      hi wolfpack, thanks for reading this hub, Maita

    • Jjustice profile image

      Jjustice 7 years ago

      Good old fashioned common sense advice on getting control of the situation. Good luck to all of us trying to take control of their finances even when banks and credit card companies keep throwing stumbling blocks in the way.

    • Karina S. profile image

      Karina S. 7 years ago from USA

      great hub, good info.

    • SEGREEN profile image

      SEGREEN 7 years ago from NYC

      Great advice. I got laid off last year.. with my Severance & Unemployment I was able to pay off over $17,000 work of CC Debt.. Then I incurred $4K hospital bill while I was working as a temp. I just used a matured CD to pay that bad boy off. Now I'm debt free. I'm finding ways now not to use my CCs now working as a temp than when I was working a Permanent job.

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      hi Justice, yes, I know we can pay all credit cards even if sometimes the CC companies wont cooperate,

      have a good day, Maita

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      oh SEGREEN< I am happy you are quite recovering now, that was devastating for you?, bless you and wishing you can really have a permanent job too, Thanks for the read, Maita

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      Hi Karina, thanks for reading this hub, I hope you learned something from it, Maita

    • GeneralHowitzer profile image

      Gener Geminiano 7 years ago from Land of Salt, Philippines

      Just Bookmarked this wonderful and useful Hub... I am not keen on credit card for I prefer to buy with cash but sooner or later I might opt for one... Great Hub here eh... PDH... you are slowly catching up with the Great Hubbers... and nice Author score too...

    • bengriston profile image

      bengriston 7 years ago

      Great advice! Getting your credit cards paid off can improve your financial outlook a lot.

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      thanks GH, credit card is good for emergency purposes too, so it is better if you can ge tone as long as you know how to manage it well,

      thanks for your compliments,

      keep up the good work too and keep on featuring the pride, Maita

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      hu Bengriston, thans for the read, and yes your right about paying off CC debt...

      have a good day, Maita

    • DREAM ON profile image

      DREAM ON 7 years ago

      Those little cards end up being a big pain in the butt.Be careful use wisely but it is almost impossible to not have at least one.You need to have some credit today.But the credit card rates are absolutely ridiculous!They should be ashamed of taking advantage of people who turn to them for extra money.

    • profile image

      poetlorraine 7 years ago

      yeah i am hearing you, and all the others that have commented, paying off mine, and it is hard,,,,,, i have learned the hard way.... wont make the same mistake again.,

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      DreamOn, I agree with you very much! Maita

    • prettydarkhorse profile image
      Author

      prettydarkhorse 7 years ago from US

      Hi poet, I agree and learning from past mistake is never too late! Maita

    • Perspycacious profile image

      Demas W Jasper 3 years ago from Today's America and The World Beyond

      You didnt mention another solution I just wrote about in the Hub titled "In Your Own Best Interest" namely, examining assets (such as a home's equity) to free oneself from slavery to the plastic card lenders. Card slaves may have other assets sitting stagnant which can be used instead of allowing card debts to increase out of sight. The first step in making any buget is to "stop the leaks" until the only interest being paid is being paid to you! Good advice here and worthy of this Hub being resurrected.

    • prettydarkhorse profile image
      Author

      prettydarkhorse 3 years ago from US

      Thanks for reading my hub and I will take a look at your hub.

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