You’re in credit card debt up to your eyes, and you don’t know a way out, perhaps you should consider easy to use credit card debt reduction methods?
You may be lost, confused, and even fed up with the monthly bill coming at the door. It’s a matter of reality we all get ourselves into, and some of us are not getting past the interest. If you are going to dig your way out, consider these tips to help structure your credit card debt reduction plan.
To start, have only one card on hand! Many people have been known to transfer balances between one company card to another in an attempt to get by, so people with 3, 5, or even 10 plastic cards have priority issues when it comes to finances simply put because having one card means one interest and not 3, 5, or 10 of them. Keeping this in mind can save you thousands.
Next, you need to look at your credit card as a form of back up not a primary; plastic money are simply convenient loans with terms on them after all (like having a loan shark in your pocket). If you have an emergency which is going to cost you hundreds, give yourself permission to use it, because chances are you may not have the funds to get by.
Just because an emergency hits doesn’t mean you should stop thinking about how to pay it back however; the idea is to have money after all. If you are going to buy something, have money ready to pay it back (or darn near close even if it takes two months instead of one).
For instance that 10.00 at the gas station doesn’t seem like much but it’s like adding on an overpriced drink to your tab each time. Times this by say thirty days, you may be out another 60-100.00 in interest if you decide to pay the minimum.
Plan, plan, and DO! Pay over the minimum every time. If you mold yourself with these ideas you do well towards your credit card debt reduction.
Now beyond the practical thoughts, reducing your total billing also is influenced by your interest rates, and tacked on fees. Simply put, what does your credit card do against you if you decide to space it?
People space credit impacts, late fees, and interest rate jumps when they sign their contracts; the wall of text in their contract simply de-motivates people to read after all. However you need to know exactly what is going to be charged in order to stay off of the financial treadmill.
Get fixed rates not when we feel like it rates. If you can’t stand reading lawyer speak, consider credit card education counseling. They take the lawyer speak and put it to your terms. Credit card debt reduction begins and ends with you!
If you are one of the few who opted for the 3,5,10 shiny plastic cards you may have an issue on your hand namely in the fact of which one to pay off. Do yourself a favor and pay the highest interest one, and work your way down.
If you can’t do that, negotiate with your credit card company to consolidate all your debts into one monthly payment. It’s easier to swallow but only should be done if you have no cash reserves.
Lastly, in credit card debt reduction, you must consider the impact of closing off your cards (or opening them!). Every card is a risk to companies, having lots of unused cards is a risk to; it’s a catch 22 either way you look at it.
However when you must solve this, you need to solve it the old fashioned way, the lesser evil the better (take a smaller hit, instead of the bigger if you close cards). If you consider these tips, credit card debt reduction should be an easier experience.