Ten percent rule to credit card help

Before paying off your credit cards, it's important to understand the golden rule of money management. Always pay yourself first. Put aside 10 percent of any money you earn or receive and save it for the future. You will never get out of debt unless you learn to save. Later, once you are out of debt, it will become prudent to invest. But for now, put aside 10 percent and don't spend it no matter what.

Make a budget

Before paying off your credit cards, write down a budget plan. In order to budget how much to pay for various credit cards, you will have to know which ones have the highest interest rates. Write down your highest to lowest interest rates. Then call the different credit card companies and play let's make a deal. Explain you would like to pay off your debt but are having trouble. Tell them you don't want to switch credit card companies if you don't have to. You should be able to negotiate lower interest rates on many of your cards. Also, some companies might forgive late fees or interest that has accumulated. Now, pay the minimum amount for the credit cards with the lower interest rates and budget the largest portion of money for the one with the highest rate.

Use fun money for debt

Most people have fun money they spend on going out and entertainment. It's money you get for birthdays, unexpected bonuses at work or for filling out a survey at the mall. From this moment on, use your fun money to pay even more money toward your credit card with the highest interest rate. It's no fun to be in debt. Instead of rewarding yourself by spending money, come up with ways to have fun for free.

Love is free

In addition to spending more time with family and friends, write down ways to not spend money. For example, rent movies and books from the library. It does not cost anything to have a library card. Go for a walk in the park. It's free whereas your membership to the gym is preventing you from getting out of debt sooner. Be creative. Before you know it, you will have more money than you ever imagined you would have.

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