Whether the economy is in a good state or not, many people tend to rack up credit card debt on their credit cards.
It is very easy to get into heavy debt when you're carrying plastic.
The build up of debt is bad for any financial plan because it puts you further away from your goals including retirement, buying a house, etc.
Don't let it affect your life.
Here are the best ways to reduce your credit card debt and get back on track financially.
Before you do anything, cut up your credit cards and stop using them.
You'll never get them paid off if you keep charging.
Don't cancel the cards, just stop using them.
It will take some willpower, but you can do it.
If you can't afford it with cash, then you can't afford it at all.
Organize your cards and debt.
This must be done before you start paying to make sure you are paying off the right cards first, and it helps to eliminate the risk of missing anything.
Set up a spreadsheet or write out all of your cards, how much you owe on each of them, and the interest rate and fees for each of them.
Pay all the minimums every month.
This is an absolute must to avoid any penalty fees.
Calculate the total of all minimum payments.
You should at least be able to afford this minimum payment each month.
Once you pay the minimums for the month, you can then start putting more cash towards the cards with the highest interest rate.
Work your way through the highest cards all the way down until they are all paid off.
The more you pay above and beyond the minimum payments, the faster you'll get it paid off and the more you'll save in interest.
Set up a strict budget and cut back on all spending.
Cut out everything that isn't a must to survive.
To get it paid off even faster, get a second job or find a way to make more money and put all of this money towards paying off your bank cards.
The best thing you can do for credit card reduction is to simply pay it off.
It sounds simple because it is.
Don't waste your time with 'promises' from miracle debt reduction programs.
Your best bet for 2010 in reducing and eliminating that debt is to pay them off as soon as possible! After that, avoid bank cards, but if you must use them, pay the balance in full each month to avoid further debt.
It is very easy to get into heavy debt when you're carrying plastic.
The build up of debt is bad for any financial plan because it puts you further away from your goals including retirement, buying a house, etc.
Don't let it affect your life.
Here are the best ways to reduce your credit card debt and get back on track financially.
Before you do anything, cut up your credit cards and stop using them.
You'll never get them paid off if you keep charging.
Don't cancel the cards, just stop using them.
It will take some willpower, but you can do it.
If you can't afford it with cash, then you can't afford it at all.
Organize your cards and debt.
This must be done before you start paying to make sure you are paying off the right cards first, and it helps to eliminate the risk of missing anything.
Set up a spreadsheet or write out all of your cards, how much you owe on each of them, and the interest rate and fees for each of them.
Pay all the minimums every month.
This is an absolute must to avoid any penalty fees.
Calculate the total of all minimum payments.
You should at least be able to afford this minimum payment each month.
Once you pay the minimums for the month, you can then start putting more cash towards the cards with the highest interest rate.
Work your way through the highest cards all the way down until they are all paid off.
The more you pay above and beyond the minimum payments, the faster you'll get it paid off and the more you'll save in interest.
Set up a strict budget and cut back on all spending.
Cut out everything that isn't a must to survive.
To get it paid off even faster, get a second job or find a way to make more money and put all of this money towards paying off your bank cards.
The best thing you can do for credit card reduction is to simply pay it off.
It sounds simple because it is.
Don't waste your time with 'promises' from miracle debt reduction programs.
Your best bet for 2010 in reducing and eliminating that debt is to pay them off as soon as possible! After that, avoid bank cards, but if you must use them, pay the balance in full each month to avoid further debt.
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