Eliminate Credit Card Debt Yourself

Executive Summary About Credit Card Debt By Justin Narin

Credit cards are very convenient. Some abuse the convenience and power of credit cards without regard to how the charges will be paid. Before they know it, they have thousands of dollars in credit card debt and no money to pay it off. Personal debt is a growing problem and credit cards are one of the leading causes of it.

How to Eliminate Credit Card Debt Yourself

If you’ve found yourself in financial trouble and want to eliminate credit card debt from your life, you need to first commit yourself to reducing your credit card debt. If you want to eliminate credit card debt, you’re going to have to make some sacrifices.

This means stop using your credit card as much as possible. So, pay for your items in cash, not credit. Once you’re in the habit of paying in cash rather than using your credit card, the next thing you need to do is budget your expenses. The best way to do this is to separate your expenses based what is necessary and what are not necessary.

You need to establish and stick to a budget if you want to eliminate credit card debt. It’s the best way to tackle it yourself.

5 Surefire Ways To Eliminate Credit Card Debt

Executive Summary About Credit Card Debt by Wesley Atkins

Do you have enormous credit card debt? You are certainly not alone. According to research, the average family in the United States has $7000 in credit card debt and pays about $1000 in interest each year!

Let’s imagine for a moment that you have $5000 debt on one credit card that is charging you 17.5% APR. Let’s also imagine that you pay only the minimum due of $25/month on this card. Guess what? You will never pay it off! The interest alone on this card is $73/month!

How do you get out of debt and use that money towards other necessities, savings, and investments? Here are a few simple methods:

Tip #1: Cut Up Your Cards

The very best way to reduce your credit card debt is to STOP using your credit cards! There is no need to have more than one card, so pick the one with the lowest interest rate and cut up the rest.

Tip #2: Move Your Debt

If you have more than one credit card payment, you may want to consider moving debt from a card with a higher APR to one with a lower APR.

Tip #3: Use the Snowball Principle

List all of your credit card debts, and the amount you are paying each month. Pay off the lowest amount first. If you have a $7000, $5000, and $2000 card with payments of $150, $125, and $100, you will finish paying off the $2000 card first. Once it is paid off, you take that $100 and put it towards the $5000 credit card. That means you are now paying $225/month. You have increased your payments which will pay off that credit card sooner and will have you paying a lot less in interest. Once that is paid off, you apply the $225 to the $7000 card, making your monthly payment $375. This will greatly accelerate the payment of this card, reducing your interest payments even further.

Tip #4: Prioritize Your Debt Repayment

One of the best ways to pay off your debts is to get rid of the highest interest payment first. If, however, the $2000 card had the lowest interest rate, you would want to pay off the card with the highest rate first.

Tip #5: Consider Consolidation

If you own a home, you may want to consider consolidating your debt using a home equity loan. Since a home loan is a secured loan, you have a much lower interest rate than you do on your credit cards. Paying a lower interest rate is always a good thing! Not only that, but the interest you pay on your home loan is tax deductible.