Revolving debt is the debt most associated with credit cards. The debtor isn’t required to pay the entire balance each month — though he can — and the minimum monthly payment may increase or decrease, depending on the debt balance and card fees. Credit card debt usually comes with interest, so the monthly payment made is split between the debt principal and the accrued interest. Accrued interest can make payments higher and payback terms longer, which makes the overall debt more expensive, so a plan to lower revolving debt should include paying more than the monthly minimum and reducing your interest rates, if possible.
To come up with a plan to lower your revolving debt, you should gather all of your account statements and note the balances owed and the current interest rates on each. You should also write down your monthly expenses and figure out how much money you have left over after your expenses are paid. This will give you a better picture of your current financial situation and help you find any additional money that can be used to pay off the debt. Try setting aside an additional amount of money each month to pay your creditors, or apply more money toward the account with the highest interest rate to reduce your overall interest costs.
After you gather your account statements, you should take a look at the interest rate for each account. Some creditors are willing to reduce the interest rate if you can prove you have a financial hardship, so try calling the phone number on your card statement to speak with a representative about your situation. If you're not able to get a rate reduction, try looking for balance transfer offers at other credit card companies or your bank. You should, however, keep in mind that there may be a fee involved that can offset the potential savings and there's also the risk that you might get into even more debt by having another account open.
As a last resort, you can try using debt consolidation to help lower your revolving debt. Companies that offer the service usually contact your creditors to see about lowering your monthly payments and interest rates. Consolidation may require only one monthly payment. You will usually have to pay a fee to the consolidation company and may find that calling your creditors yourself is a less expensive alternative with similar results.
