What is the best way to reduce the amount of credit I have?

Ok assuming you have decent to Good Credit and the problem is just reducing the debt, there are two situations I can think of:

1st is you have a lot of credit but you are not using it> This is not necessarily a bad thing it only hurts you if you need to acquire new credit for example a car loan.. The new lender will look at you as if everything you have is maxed out, and will base their decision on whether or not you will be able to afford the monthly payments for all your loans should you max them out..

2nd is you have a lot of credit that is already used up> In this situation you will have to do some work, here are some tips:

A. Identify the accounts with the highest interest , see if you can transfer that balance to a lower rate account.

B. Stop or Reduce spending on your revolving/reusable accounts. (Such as Lines of Credit, Store cards and Credit Cards).

C. Contact your Credit Card Companies ask for a low rate option added to your card. (most companies have this option for a small annual fee for example in Canada TD Visa is usually 18-19.9% but if you pay $25 yearly fee you can get a 10-12.5% interest rate. Bank of America also offers a similar option the United States.

D. Try to Increase the monthly payments if possible.

E. If you are interested in Closing out your accounts and making one monthly payment you can speak to your bank about consolidation Loans.

P.S> Stay away from those debt management companies you see on TV they will put you in what is called a CONSUMER PROPOSAL which will ruin your credit for at least 6 years and you will still have to pay the lenders back.

by Omari Whyte