Eliminate Credit Card Spending
You must immediately eliminate credit card spending
because you will never pay credit card debt off if
you continue to add to the outstanding balance. The
interest on that debt added with a climbing balance
will make it impossible to ever pay off.
Pay More Than The Minimum Payment
Always pay more than the minimum payment on the credit
card you want to eliminate first. Paying the minimum
payment makes you keep paying that high credit card
interest rate. That's exactly what the credit card
companies want because they are making a fortune off
of that interest.
The best way to pay credit card debt off is start
paying off the credit card with the highest interest
rate first. Pay the minimum monthly payment on the
others. Once each card is paid redirect your funds
to the next highest interest rate card so you can
eventually get rid of credit card debt.
Snowball Debt Payments
Snowballing debt payments means to transfer credit
card debt from a high interest rate card to a low
interest rate card. By doing this you pay a greater
amount of money towards the balance and less interest
on debt.
This increase in the amount of money you pay toward
your outstanding balance allows you to snowball your
efforts and pay credit card debt off quicker. It's
worth looking at each individual card and determine
how much interest you are paying with each of them.
Renegotiate With Creditors
Contact your credit card company and ask for a lower
interest rate. They may want your business enough
to lower it. The interest savings to you will multiply
your efforts to pay credit card debt off quicker.
One last tip is, if you choose to close your credit
card accounts, do not close them until after the final
bill has been paid. Some credit card companies will
penalize you by raising your interest rate if you
close an account that carries an outstanding balance.
If you are ever going to get rid of credit card debt
it's important to set a realistic budget for yourself.
Lower your spending in all areas so you can pool your
available cash to pay off your balances quicker. Think
of how you will feel when you pay credit card debt
off and you are finally free of high credit card interest.
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