10 Strategies For Getting Rid Of Credit Card Debt
This may sound obvious, but if you keep doing the same thing you did to accumulate the credit card debt, you'll never get rid of it. I found an article that gives 10 great strategies for eliminating your credit card debt.
Online, February 23, 2011 (Newswire.com) - This may sound obvious, but if you keep doing the same thing you did to accumulate the credit card debt, you'll never get rid of it. I found an article that gives 10 great strategies for eliminating your credit card debt.
-- Morgan
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It can be frustrating to make very little progress in eliminating your credit card debt while a big slice of your income gets drained away month after month. By using a combination of the different strategies outlined here, you should be able to eliminate credit card debt much faster. In the end, the feeling of accomplishment you'll have will be well worth the effort that you put into it.
Stop Using Your Credit Cards
The best tactic to make faster progress is to not add another dime to your credit card balances while you pay them down. This means you'll need to pay for your expenses with cash as much as possible. You may not be able to do it 100% at first as you adjust, but you'll soon realize that there are many things you don't need to buy after all.
Ask For Lower Rates
Start by calling the accounts with the highest rates. Explain to them that you are struggling with paying your bills, even making the minimum payments, but that you're trying to do the right thing and pay your debts. Some of them may say yes just because you asked, and this will help you eliminate credit card debt even faster.
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This is a pretty simple, but often overlooked strategy. You can often get a lower rate just by asking your credit card company to lower your rate. They'd rather have some money than no money. It never hurts to ask.
-- Morgan
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Take Advantage of Balance Transfer Offers
You may be receiving promotional balance transfer offers from time to time. Analyze each of these offers, noting the interest rate, duration, balance transfer fee and interest rate at the end of the promotional period. If it makes sense and you can benefit from moving the debt, you should do so and then make sure to pay off the new balance before the new rate goes into effect.
Pay Off the Highest-Rate Cards First
Make just the minimum monthly payment on all your accounts except for the one that is charging you the highest interest rate. Funnel as much money as you can reasonably afford toward that account until it is completely paid off. Then do the same thing with the remaining highest-rate account, and continue doing this until they are all paid off. This will result in the lowest bottom-line cost to eliminate your credit card debt.
Use Money From Low-Interest Savings Accounts
You may be fortunate enough to have some money in non-retirement savings accounts, and these funds may be earning you very little interest right now (as well as being taxable). Consider using some of this money to eliminate your credit card debt. The money will effectively be earning the high interest rate of the retired debt. Just keep in mind that you should also consider the need for an emergency fund.
Cut Back on Expenses
Put all your monthly expenses down on paper and take a hard look at them. Decide which expenses you can trim or eliminate without making yourself feel too deprived during the process. At the same time, carry around a pocket-sized notebook (or use a mobile app on your phone) for a month and record all your expenditures. You may discover that you're drastically underestimating some of your expenses, and this awareness will help you free up money to put towards your debt. Consider your expenses in light of how much extra money it will cost you to not use it towards eliminating your credit card debt.
Increase Your Income
There are many ways you can increase your income, from getting a second job to other creative ways to raise some cash. Garage or yard sales, and selling things you no longer need on eBay, Amazon or Craigslist, can help you raise extra money to put towards eliminating your credit card debt.
Become a Smarter Shopper
Look for sales on grocery items you enjoy, eat at home more often, stay away from the malls and become an expert at price shopping on the internet. You can also consider second-hand items as an option where it makes sense. You might even discover some nearby thrift stores that have items you need for pennies on the dollar.
Keep Track of Your Progress
Almost everyone who sets out on a plan to eliminate credit card debt will at some point feel discouraged or even depressed about the task that they've undertaken, and may ask themselves if all the sacrifice and effort is really worth it or even possible. That is why it is important to keep track of the progress you're making along the way. You can refer to it whenever you need help overcoming the temporary emotional lows that may come along.
Stay On Course
Make up your mind that you're going to stick to your plan until all your accounts have a zero balance. Set milestones, such as designated debt balance intervals or the elapsed time you've devoted to your plan, so you can see how much progress you've made towards eliminating your credit card debt.
Source: Debt Consolidation Advice
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Any one of these tips alone, may not make a big dent in your credit card balances. Combined, however, they can be a powerful combination that can really start reducing your debt.
Let me know what your thoughts are and please take a minute to Like my page on Facebook. I'd appreciate your help in spreading the word.
Think wealthy thoughts,
Morgan Kimble
Like this? Take a look at my last article: Do You Really Need It?