Paying Off Credit Cards

Debts are no fun at all – especially credit card debts. If you are reading this, you are probably stuck trying to payoff your credit cards – and that is okay! Million others are on the same boat.

Here is what you can do to start paying it off:

  • Stop using the credit cards.
  • Set a strict budget for your expenses. A budget that is made intentionally to leave you with leftover money to pay off your debts!
  • Layout your credit card statements side by side.
  • Pay attention to the one that carries the highest interest.
  • Next, compare the outstanding balances.

Ideally, the card that you want to payoff first is the one with the smallest balance. However, this may not be entirely true if the smaller balance carries a lower interest rate and is actually not that much different than the other credit cards with higher interest rate. For example, if you have $5,000 on a Credit Card A with 15% interest and $6000 balance on a credit card B with 20% interest, it is better to tackle credit card B first while still making minimum payment on credit card A.

Once you payoff one credit card, you should review your credit cards again and repeat the same method.


In addition to the above method, Balance Transfer is a great way to quickly payoff credit card. You can try calling your credit card companies and ask if they have balance transfer 0% promotional rate. Typically, they always have 0% for 12-15 months, but you will have to pay 3-4% balance transfer fee. Depending on the balance amount, paying this 3-4% fee might not worth the trouble.

A better way to save on interests via balance transfers is to find a NEW credit card that offers $0 balance transfer fee AND 0% interest rate. Yes there are such thing although not many. For example the Chase Slate Credit Card which offers 0% interest for 15 months on Balance Transfers PLUS $0 balance transfer fee if you make the balance transfer within the first 60 days of account opening.

This is a great way to save a lot of money. All your payments every month will go towards your outstanding balance (principal).

Lastly, if you keep your focus to payoff credit cards, you will definitely be able to pay it off. The timeline is in your hand!

Drop us a line below if you have any questions. Cheers!