- 1). Make a list of all credit card debt by interest rate. The balance with the highest interest rate should be listed first until every credit card is accounted for. Accounts with the highest interest rate will be paid off first to save money.
- 2). Apply extra payments to the credit card balance with the highest rate of interest. Make the minimum payment, at least, to every credit card account. The balances with the higher rate of interest should have additional payments applied. Determine how much the extra amount will be. Start with $25 or $50 extra.
- 3). Start paying the next account. When the first high-interest account is paid off, apply that payment to the next account. If you were paying $50 a month on the first account and $60 on the next account, you will now apply $110 to the next account. Continue in this manner until all credit cards are paid off.