The first step is –To accumulate all your credit cards .Make a list of the credit cards with their numbers, the total credit limit assigned on each of the credit cards, the amount that you owe and the rate of interest charged on each of the credit cards.
The second step is –Call the banks (credit card issuers) of each of your credit cards and request for a lower rates of interest. Also inquire about the rates of interest being offered on the balance transfer deals by each of the card issuers. In case the interest rate is high, ask for a lower or negotiable rate of interest. In case the concerned executive doesn’t comply. Request for the call to be transfer to a senior .Check with all the credit card issuers to compare and get the best possible balance transfer deal. In case you do not get a good deal, try applying for a new credit card with 0% interest rate on balance transfer.
The third step is-Sort out all your credit cards in the order of higher interest rates to lower interest rates. For example- you have 3 credit cards-cards A the interest rate is 20%, Card B the interest rate is 15% and Card C the interest rate is 0%.
The fourth step is-The right way to save money is to transfer the balance from credit card with higher interest rates to a credit card with the lowest interest rates. Like in the above example-Transfer the balance from Card A(with 20% interest rate) to Card C (with 0% interest rate).In case there are charges for balance transfer ,you need to include the balance transfer fee in your calculation to get the right amount.
The fifth step is-Try to make payments of the minimum amount due every month on each of your remaining credit cards. This will prevent late fee charges being levied on your credit card and from making your account delinquent.
The sixth step is-Once one credit card debt has been settled and cleared, Move on to the next card, Continue doing this till all your debts have been settled and cleared off.
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