The faster we are able to eliminate our debt, the happier we will be. This seems like a pretty basic concept. But eliminating debt is sometimes easier said than done. Lets go over a few tips for getting rid of or drastically reducing credit card debt to make our lives easier.
When we carry a large number of credit cards, it is just human nature that we use them. When I was in the debt mode, I used to actually think to myself "wow, I have 50 thousand dollars in my pocket". That was a pretty destructive thought process. If you dont incur the debt, your better able to save for the future and have money ready when you need it. Change the thought process, and change the habits.
While we have to admit that incurring the debt is our own fault, the credit card companies dont help. They have no vested interest in you eliminating your debt. They would rather you pay forever. They lure people in to buying things they dont need so that they can earn huge amounts of interest on large balances.
Remember, being a little short because you made a purchase of something that you wanted or needed is one thing. Being short, and having the credit card companies drown you in increasing debt for years to come is much worse.
We need good interest rates on things like mortgages and car loans. Clearly, these are areas where it is probably going to be necessary to borrow money. Large amounts of consumer or credit card debt will make it difficult to borrow money for these items. When your debt is large, you are considered a higher risk and may have to go to hard money lenders who will charge extremely high rates of interest. The problem can really grow out of control.
Credit cards are not extra money. They are convenient, but should be used for needed items. If you have enough will power, then keep one available for emergency purchases. By emergency purchase I mean new tires, or car repairs, not a new T.V. Stay out of debt, by avoiding it altogether. Its easier to avoid debt than it is to eliminate debt.
Destroy your credit cards, except for the one with the lowest interest rate. Begin a repayment plan starting with your highest rate card. If you get an offer to transfer your balance to a new card at a lower interest rate, take it. But keep on paying off the card even if you have to work more or spend less. Whatever you do, dont use the card!
It is vital to pay more than the minimum payment. Let your payments snowball, and you will eliminate your debt sooner. If you have 5 credit cards, make a higher payment on one, while paying minimum on the others. When that one is paid, apply the payment from the first card, to the next one.
Transfer your balance to a lower rate or zero rate card if you get an offer for one. Just dont use the card! Debt elimination is easier at zero percent interest.
Just think how much better you will feel after you eliminate your debt, and owe nothing to anyone.
When we carry a large number of credit cards, it is just human nature that we use them. When I was in the debt mode, I used to actually think to myself "wow, I have 50 thousand dollars in my pocket". That was a pretty destructive thought process. If you dont incur the debt, your better able to save for the future and have money ready when you need it. Change the thought process, and change the habits.
While we have to admit that incurring the debt is our own fault, the credit card companies dont help. They have no vested interest in you eliminating your debt. They would rather you pay forever. They lure people in to buying things they dont need so that they can earn huge amounts of interest on large balances.
Remember, being a little short because you made a purchase of something that you wanted or needed is one thing. Being short, and having the credit card companies drown you in increasing debt for years to come is much worse.
We need good interest rates on things like mortgages and car loans. Clearly, these are areas where it is probably going to be necessary to borrow money. Large amounts of consumer or credit card debt will make it difficult to borrow money for these items. When your debt is large, you are considered a higher risk and may have to go to hard money lenders who will charge extremely high rates of interest. The problem can really grow out of control.
Credit cards are not extra money. They are convenient, but should be used for needed items. If you have enough will power, then keep one available for emergency purchases. By emergency purchase I mean new tires, or car repairs, not a new T.V. Stay out of debt, by avoiding it altogether. Its easier to avoid debt than it is to eliminate debt.
Destroy your credit cards, except for the one with the lowest interest rate. Begin a repayment plan starting with your highest rate card. If you get an offer to transfer your balance to a new card at a lower interest rate, take it. But keep on paying off the card even if you have to work more or spend less. Whatever you do, dont use the card!
It is vital to pay more than the minimum payment. Let your payments snowball, and you will eliminate your debt sooner. If you have 5 credit cards, make a higher payment on one, while paying minimum on the others. When that one is paid, apply the payment from the first card, to the next one.
Transfer your balance to a lower rate or zero rate card if you get an offer for one. Just dont use the card! Debt elimination is easier at zero percent interest.
Just think how much better you will feel after you eliminate your debt, and owe nothing to anyone.
About the Author:
If debt has gotten out of control and you feel trapped, there is a solution. Bankruptcy is not the solution, it will destroy your credit rating for at least 10 years making it nearly impossible to buy a house or car. Learn how to Eliminate Debt And Get Your Life Back
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