How To Begin Credit Card Debt ReductionBegin Credit Card Debt Reduction According to a recent study, 43% of American families spend more in a year than they earn. That, of course, is a recipe for disaster. Also, according to this study, the average amount of debt per family is $8000 and personal bankruptcies have more than doubled in the past ten years. Couple that with the recent economic downturn and it is obvious that many American families are struggling with debt, including overwhelming credit card payments.
Reducing credit card debt does not have to be difficult nor does it mean that you must make such drastic changes to your life that you must live in austerity. Because of interest rates and charges, reducing your principal balance on your credit card pays large dividends because then you pay less money in interest charges going forward. By using the creative tips below, you can reduce your credit card debt. Obviously, the more dramatic reduction you will see on your credit card debt. Creative Tips For Credit Card Debt Reduction 1. For every “frivolous” purchase you make, such as a Starbucks latte or a meal out, commit to only paying that amount with cash or your debit card, but making an equal payment to your credit card. If you latte costs $5, pay for it with cash (ie, do not create new debt) and then make a note to add at least $5 to your credit card payment. Follow this consistently and you will spend less overall while socking more of your money toward debt reduction. 2. Pay the bare minimum in interest charges. Call your creditor to ask for a rate reduction or shop around for a lower interest rates. If you find a card that offers 6 months at 0%, transfer what you think you can pay off in 6 months! No interest charges! 3. Strive to pay at least 10% above the minimum payment on your credit card with the highest interest rate. Even sending in $170 when the bill is $150 will make a large difference over time.
Related posts:
Leave a Reply |
