For people who have accumulated large amount of outstanding balances on their multiple credit cards, it is indeed a big challenge for them to get rid of their debt within a short period of time. Are you a big spender? If you have got $10,000 outstanding on your card statements, what are the essential steps you should take in order to eliminate your debt in three years time?

You may think it is an unachievable goal. In fact, if you take the right approach, you can actually overcome your debt problem smoothly. Making monthly payment to your credit accounts is not as simple as you think. If you don’t use the right strategy, it will take you more than 10 years to pay off the total debt. I am here to suggest you the practical way.

Step 1: Stop creating new debt

As a card user, you may tend to purchase all sorts of products and services by swiping your cards whenever and wherever you like. If you have strong determination to get rid of your debt, it is indeed important for you to stop using your cards. If you don’t have strong self discipline, you are advised to destroy the cards immediately. By doing so, you will be able to avoid yourself from creating more financial burden.

Step 2: Setting priority on high interest cards

Since you have multiple cards provided by different lenders, it is for sure that you have different interest rates and financial charges. In order to reduce your financial obligations gradually, it is always wise for you to pay off your high interest credit cards first because you will be able to save a lot of cost from there. Pay more to the particular cards and you should only make the minimum payment to other low interest cards. In other words, you are reminded to pay off your credit card debts in the correct sequence.

Step 3: Pay off those cards with lesser outstanding balances

You may not have the same outstanding amount on each card. In order to eliminate your debt faster, you are advised to pay off those cards with lesser outstanding balances. By doing so, you will be able to have zero balance on certain cards. Once you have cleared the outstanding balances on certain accounts, your debt will become more manageable.

Step 4: Raise extra fund to pay more

In order to speed up the repayment process, it is always good if you can raise extra fund every month to pay back your credit card debt. Don’t just aim to pay the minimum payment. It will make your repayment period longer. Always get more cash to pay as much as you can. The more money you pay back, the faster your repayment period is and the more interest you can save.

Last but not the least; when you are focusing on repaying your credit card debt, don’t forget to have some saving for yourself and your family. You are recommended to set up an emergency fund so that you can have some cash to spend whenever there is a need in your daily life.