A Way to Pay Off Credit Card Debt Faster

One of the best ways to get your financial house in order is to work toward paying off your credit card debt. But its often easier said than done.

One way to work toward that goal-- is by making what Bill Hardekopf calls "micropayments." Hardekopf heads Lowcards.com-- a free, independent website that helps consumers compare credit cards and find the best ones to suit their individual needs! He also wrote The Credit Card Guide Book.

So what are micropayments? Hardekopf says it's when you make smaller payments throughout the month instead of one large payment at the end of the month.

He says "Micropayments can have a significant impact on the amount of interest you pay. If you carry a balance, credit card companies charge daily interest. Make your payment at the end of the billing period, and you will pay interest on the full balance for that entire billing period. Pay more often and you reduce your balance and hence, the interest you pay each month."

Hardekopf suggests you start by dividing your monthly bill in half and pay that amount every two weeks. "By the end of the year, you will have made 26 payments or the equivalent of 13 monthly payments, he says. "The extra monthly payment resulting from this payment plan will enable you to pay down your debt at a faster pace."

He recommends you sign up for an electronic transfer to make sure that you don't miss a payment. Also, call your credit card company and verify that you can make separate payments and have it credited to your monthly minimum.

"The smaller micropayments are a good psychological tool to take control of your credit card debt, " says Hardekopf. "They provide faster results and even a little immediate gratification that keeps you motivated. Instead of eating out or splurging on something that you don't need, you can immediately apply that money to your debt."

For more on micropayments and to compare credit cards, go to http://www.lowcards.com.