How to Deal With Excessive Credit Card Debt

• Step 1

  Gather all of your most recent credit card bills. Highlight the total amount due, minimum monthly payment due and the interest rate on each bill.

• Step 2

  Launch a computer spreadsheet program, such as Microsoft Excel. Enter all of the information highlighted on the bills into the spreadsheet. Begin with the card issuer's name, then tab to the next cell and enter the total amount due for that card. Tab to the next cell and enter the minimum payment. Tab to the next cell and enter the interest rate.

• Step 3

  Review the information you entered on the spreadsheet. Determine how much you have been paying on each bill and which card is costing you the most money in finance charges. The larger the balance and the higher the finance charge percentage, the more you are paying in finance charges alone, without impacting the original balance.

• Step 4

  Calculate your household budget in another area of the spreadsheet. Begin by listing your total monthly income and then create a column for regular monthly expenses. Compare the income and expenses to determine how much more you can pay on each credit card each month. The additional payment should be several times more than the minimum payment due, in order to impact the total balance and not just the finance charges.

• Step 5

  Once you determine how much you can afford to pay on each card every month, make the payments on time, every time, to avoid excess finance charges and late fees. Continue making the additional payments on each card until all of your card balances are paid off.

• Step 6

  Stop using all of your credit cards until the balance is paid off. Once you start using a credit card again, monitor your purchases and pay as much as possible (depending on your budget) of the total balance each month, to eliminate the need to pay excessive finance charges on the increasing balance.

• 2
• Credit card bills Excel spreadsheet
• Credit card bills
• Excel spreadsheet
• Take your credit cards out of your wallet and put them in a safe place at home. Keep the one with the lowest balance and the lowest finance charge with you, but only use it in an extreme emergency.
• Take your credit cards out of your wallet and put them in a safe place at home. Keep the one with the lowest balance and the lowest finance charge with you, but only use it in an extreme emergency.
• Maintain your increased payments until the balance is completely paid off. Resist temptation to use the card once the balance starts decreasing.
• Maintain your increased payments until the balance is completely paid off. Resist temptation to use the card once the balance starts decreasing.

References & Resources

• Bank Rate: =Calculating minimum payments